PROPERTY

PROPERTY- an object or a right which is appropriated or susceptible of appropriation by man, with capacity to satisfy human wants and needs.

CLASSIFICATION OF PROPERTY (SANDO DED CMC)

1. Susceptibility of Substitution. Fungible or Nonfungible2. Alienability. Within the commerce of man or Outside the Commerce of Man.3. Nature. Real, Personal or Mixed4. Divisibility. Divisible or Indivisible5. Ownership. Public or Private6. Dependence or Importance. Principal or Accessory7. Existence. Existing or Future8. Definiteness or Designation. Generic or Specific9. Consumability. Consumable or Non-Consumable10. Materiality. Corporeal/Tangible or Incorporeal/Intangible11. Custody or Court or Free. In custodia legis or Free.

REQUISITES/CHARACTERISTICS OF PROPERTY. (USA)

1. Utility- the capacity to satisfy some moral or economic human wants.2. Substantivity or Individuality- the quality of having existence apart from any other thing.3. Appropriability- susceptibility of being possessed by men.

CLASSIFICATION OF IMMOVABLE PROPERTY. (NIDA)

1. Nature- Cannot be moved from place to place because of their nature.a. Land, Buildings, roads and constructions of all kinds adhered to the soil. (415.1)b. Mines, Quarries and slag dumps, while the matter thereof forms part of the bed, and waters

either running or stagnant. (415.8)

Jurisprudence:a. Bicarro vs. Teneza: “Once a house is demolished, its character as an immovable

ceases.”b. Leung Yee vs. Strong Machinery Co.: “The building of strong materials in which the rice-

cleaning machinery was installed by the "Compañia Agricola Filipina" was real property, and the mere fact that the parties seem to have dealt with it separate and apart from the land on which it stood in no wise changed its character as real property. It follows that neither the original registry in the chattel mortgage of the building and the machinery installed therein , nor the annotation in that registry of the sale of the mortgaged property, had any effect whatever so far as the building was concerned.”

c. Standard Oil Co. of New York vs. Jaramillo- The parties to a contract of chattel mortgage may by agreement treat as personal property that which by nature would be real property, such as leasehold rights and building.

d. Evangelista vs. Alto Surety & Insurance Co.- “Intention to treat as personal property not binding to third persons, but only to contracting parties.”

e. Makati Leasing & Finance Corp. vs. Wearever Textile Mills, Inc.-“The law makes no distinction as to the ownership of land on which the house is built.”

f. Davao Sawmill Co., Inc. vs. Castillo- “A mortgaged house built on a rented land is personal property not only because the deed of mortgage considered it as such, but also because it did not form part of the land for it is now well-settled that an object placed on land by one who has only a temporary right to the same such as the lessee or usufructuary, does not become immobilized by attachment.”

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g. Tumalad vs. Vicencio- “Statements by the owner declaring his house to be a chattel is a conduct that may conceivably estop him from subsequently claiming otherwise. (Ladera vs. C.N. Hodges. Although there is no specific statement referring to the subject house as personal property, yet by ceding, selling or transferring a property by way of chattel mortgage defendants-appellants could only have meant to convey the house as chattel, or at least, intended to treat the same as such, so that they should not now be allowed to make an inconsistent stand by claiming otherwise.”

2. Incorporation-essentially movables but attached to an immovable that it becomes an integral part of it. (TESA)

a. Trees, plants & growing fruits adhered to the soil. (415.2)b. Everything attached to an immovable in a fixed manner that it will break or deteriorate if

separated. (415.3)c. Statues, reliefs, paintings or other objects for use or ornamentation if intention to attach them

permanently to the immovable is revealed. (Only the owner or agent should place them. 415.4d. Animal houses if intended by the owner to become permanently attached to the immovable.

(415.6)

Jurisprudence: a. Lavarro vs. Labitoria- “Since trees and plants annexes to the lands are parts thereof,

unless rights or interests in such trees or plants are claimed in the registration proceedings by others, they become the property of the persons to whom the land is adjudicated.”

b. Sibal vs. Valdez- “For purposes of attachment, execution and the chattel mortgage law, growing crops or fruits or ungathered products or fruits have the nature of personal property.”

c. Uprooted timber still part of the timber land according to Manresa.

3. Destination- movables but purpose is to partake of an integral part of an immovable for the utility it gives to the activity carried thereon.

a. Statues, reliefs, paintings or other objects for use or ornamentation if intention to attach them permanently to the immovable is revealed. (Only the owner or agent should place them. 415.4

b. Machinery, receptacles, or instruments placed by owner of the tenement or his agent and tend directly to meet the needs of such works/industry. (415.5)

c. Animal houses if intended by the owner to become permanently attached to the immovable. (415.6)

d. Fertilizer actually used on a piece of land. (415.7)e. Docks and structures which though floating are intended by their nature and object to

remain at a fixed place on a river, lake or coast. (415.9)

Jurisprudence:

a. Davao Sawmill vs. Castillo- “Machinery which is movable in its nature only becomes immobilized when placed in a plant by the owner of the property or the plant. But not when so placed by the tenant, a usufructuary or any person having only a temporary right, unless such person acted as the agent of the owner.”

b. Burgos, Sr. vs. Chief of Staff- “Machinery, though in fact bolted to the ground, remains movable property susceptible to seizure under a search warrant, where its owner is not the owner of the land and/or building on which it was placed.”

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c. Mindanao Bus Co. vs. City Assessor and Treasurer- “A transportation business is not carried on in a building or on a specified land. Hence, equipment destined only to repair or service a transportation business may not be deemed real property.”

d. Berkenkotter vs. Cu Unjieng-“Movable equipment to be immobilized must first be essential and principal elements of an industry or works without which, such industry or works would be unable to function or carry on the industrial purpose for which it was established.”

-“Improvements must be in a permanent nature and essential to the industry or works.”

e. Board of Assessment Appeals vs. Manila Electric Co. – “Poles and steel supports or towers of Meralco are not real property. They do not constitute buildings or constructions adhered to the soil. They are merely attached to a square metal frame by means of bolts, could easily be dismantled and moved from place to place. They are not attached to an immovable in a fixed manner and they can be separated. They are not machineries, but even if they are, they are not intended for industry or works on the land in which they are constructed.”

f. Standard Oil Co. of New York vs. Jaramillo- “It is a familiar phenomenon to see things as real property for purposes of taxation which on general principles might be considered personal property.”

g. Rubiso vs. Rivera- “Vessels are essentially movable but they partake to a certain extent of the nature and conditions of real property due to their value or importance.”

4. Analogy/Law- united to the immovable property by express provision of law.--Contracts for public works, and servitudes and other real rights over immovable property. (415.10)

MOVABLE PROPERTY (SIFTOS)

1. Susceptible of appropriation that are not included in Art. 415.2. Immovable that is designated as movable by special provision of law.3. Forces of nature brought under control by science.4. Things which can be transported from place to place without impairment of the real property where they are fixed.5. Obligations and actions which involve demandable sums.6. Shares of stock of agricultural, commercial and industrial entities, although they may have real estate.

*** Other Incorporeal property: Copyrights, Patents, Trademarks etc.

TESTS TO DETERMINE WHETHER PROPERTY IS MOVABLE.1. Rule of Exclusion- not included in ART. 415.2. Rule of Description- if the property can be transported from one place to another, and no injury would be suffered by it, then it is personal property, unless expressly included in Art. 415.

Jurisprudence:1. Involuntary Solvency of Strochecker vs. Ramirez- “½ Interest in Business is movable is

movable”2. Sibal vs. Valdez- “Growing crops or ungathered products raised by labor and cultivation

are considered personal property. The existence of a right on the growing crops is a mobilization by anticipation.” [The Chattel Mortgage Law considers them also personal property]

3. US vs. Carlos- “The true test of what is a proper subject of theft seems to be not whether the subject is corporeal or incorporeal but whether it is capable of appropriation by another than the owner. Electricity, the same as gas is a valuable article of merchandise, bought and sold like other personal property and is capable of appropriation by another.”

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CLASSIFICATION OF MOVABLE PROPERTY.

1. According to Nature.a. Consumable- cannot be utilized without being consumed.b. Non-Consumable

2. According to the intention or purpose of the parties.a. Fungible- if it can be substituted by another thing of the same kind, quantity and quality.b. Non-Fungible- if not replaceable in such equivalents.

CLASSIFICATION OF PROPERTY ACCORDING TO OWNERSHIP.

1. Public Dominion- outside the commerce of men.Kinds: a. intended for public use (420)

b. intended for public service of state, provinces, cities & municipalities. (420/424)Characteristics:

1. outside the commerce of men-cannot be alienated or leased or be the subject of any contract.

2. cannot be acquired by private individual through prescription3. not subject to attachment or execution.4. cannot be burdened by voluntary easement.5. cannot be registered under the Land Registration Law.6. in general, can be used by everybody.

c. for the development of national wealth. (420)

2. Private Ownership-A. Patrimonial property of State, provinces, cities and municipalities (424)

i. exists for attaining the economic ends of the State.ii. property of public dominion when no longer intended for public use/service (422)

NOTE: Patrimonial Properties may be acquired by private individuals or corporations through prescription. They may be an object of an ordinary contract.

B. Property belonging to private persons- individually or collectively. (425)

NOTE: Sacred and religious objects are considered outside the commerce of men. They are neither public nor private.

JURISPRUDENCE:

1. Rabuco vs.Villegas- “Property is presumed to be State property in the absence of any showing to the contrary.

2. Santos vs. Moreno- “Canals constructed on private lands of private ownership but the owner loses his proprietary right over said canal through prescription by allowing the public to use it for transportation and fishing purposes.”

3. Republic vs. CA- “A court has no jurisdiction to award foreshore land to any private person or entity. A foreshore land is that strip of land that lies between the high and low water marks and is alternatively wet and dry according to the flow of the tide.

4. Binalay vs. Manalo- “Although Art. 420(1) speaks of only rivers and banks, “rivers” is a composite term which includes the running waters, the bed and the banks.”

5. Villearico vs. Sarmiento- “A lot on which stairways were built for the use of the people as passageway to the highway is a property intended for public use.”

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6. Municipality of Hinunangan vs. Director of Lands- “A municipality which permitted erection of private houses on a land upon which was built a stone fort which had not been used for many years for the purpose for which it was contructed, did not convert the land into a property of the municipality. The fortress may not have been used for many years for the purposes for which it was intended, but this does not deprive the State ownership of therein. The ownership of the State of the property becomes patrimonial. There could, however be a prescription in favor of the Municipality where the land has been used for purposes distinctly public, such as for the municipal court house, public school, or public market.”

7. Cebu Oxygen & Acetylene Co., Inc. vs. Bercilles- “A city council which closed a portion of a street and authorized its sale to the highest bidder has such power. A withdrawn property can be the object of ordinary contract.”

8. Laurel vs. Garcia- “Roppongi property which was acquired by the Philippines under the Reparation Agreement entered into with Japan is of public dominion unless it is convincingly shown that the property has become patrimonial. It is property belonging to the State and intended for some public service. A property continues to be part of the public domain until there is a formal declaration on the part of the government to withdraw it from being such. Abandonment cannot be inferred from non-use.”

9. Dacanay vs. Assistio Jr. – “Public streets or thoroughfares may not be leased or licensed to market stallholders by virtue of a city ordinance or resolution. Local Government cannot withdraw a public street for public use, unless it has been granted such authority by law.”

PROPERTY OF POLITICAL SUBDIVISIONS.1. Property for Public Use (provincial roads, city/municipal streets, squares, public waters, promenades and public works)2. Patrimonial Property

Jurisprudence:1. Macasiano vs. Diokno- “Political subdivisions have no authority whatsoever to control or

regulate the use of public property unless specific authority is vested upon them by the Congress.”2. Capitulo vs. Aquino- “It does not matter if property intended for public use is not actually

devoted for public use. It remains property for public use or service.3. Province of Zamboanga Del Norte vs. City of Zamboanga- “Properties belonging to

Zamboanga DN were transferred under RA 3039 free of charge in favor of Zamboanga City. The issue in this case is whether the properties are for public use or patrimonial property, for purposes of ascertaining the control of Congress. It was held that all the properties in question except the two lots used as High School playgrounds could be considered as patrimonial properties of the Zamboanga Province. Even the capitol site, the hospital and leprosarium sites and the school sites will be considered patrimonial for they are not for public use. They would fall under the phrase ‘public works for public service’, for such public works must be for free and indiscriminate use by anyone. RA 3039 is valid insofar as it affects the lots used as capitol site, school sites and its grounds, hospital and leprosarium sites and the highschool playground sites since they were held by the former Zamboanga province in its governmental capacity and therefore subject to absolute control of Congress.

“Buildings follow classification of public lands on which they are built.”“Registration cannot convert public property to private property.”“Civil Code Classification is without prejudice to provisions of special laws.”

4. Salas vs. Jarencio- “A lot registered in the name of the City of Manila which was converted by law as disposable or alienable land of the State is not patrimonial absent any evidence in contrary. The property, regardless of the source or classification in the possession of a municipality excepting those acquired with its own funds in its private or corporate capacity, is held in trust for the State and subject to its paramount power.

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5. Manila Lodge No. 761 v. CA- “The grant made by Act No. 1360 of the reclaimed land to the City of Manila is a grant of a public nature, the same having been made to a local political subdivision. Such grants have always been strictly construed against the grantee, therefore it is of public domain.” “An intention to devote property to public use is sufficient to make property of public domain.” “Executive or legislative declaration is necessary to convert property of public domain into patrimonial.”

6. Cuaycong vs. Benedicto- “The fact that a road has been kept in repair by a private enterprise and the government has not contributed to the cost of its construction or maintenance, tends strongly to support the contention that it is a private way or privately owned by the enterprise. And the mere fact that a tract of land has been used for a long time as a road will not alone warrant the presumption that it has been dedicated to the public.”- [425]

OWNERSHIP.- It is the independent and general right of a person to control a thing particularly in his possession, enjoyment, disposition and recovery, subject to no restrictions except those imposed by the State or private persons, without prejudice to the provisions of the law.

-Ownership may be exercised over a thing or a right (427)

TITLE- is that which constitutes a just cause of exclusive possession or which is the foundation of ownership of property.

KINDS OF OWNERSHIP1. Full Ownership- includes all the rights of the owner.2. Naked Ownership- where the right to the use and the fruits has been denied.

(Naked Ownership + Usufruct = Full Ownership)3. Sole Ownership- ownership is vested only in one person4. Co-Ownership/Tenancy in Common- ownership is vested in two or more owners; unity of the property; plurality of subjects.

CHARACTERISTICS OF OWNERSHIP (EGEIP)1. Elastic- Powers may be reduced and thereafter automatically recovered upon the cessation of the limiting rights.2. General- the right to make use of all the possibilities or utility of the thing owned, except those attached to other real rights existing thereon.3. Exclusive- there can only be one ownership over a thing at a time. There may be two or more owners but only one ownership.4. Independence- It exists without necessity of any other right5. Perpetuity- ownership lasts as long as the thing exists. It cannot be extinguished by non-user but only by adverse possession.

LIMITATIONS1. General limitations imposed by the state. (eminent domain, police power, taxation)2. Specific limitations imposed by law. (servitudes, easements)3. Limitations imposed by the party transmitting the property. (will, contract)4. Limitations imposed by the owner himself. (voluntary servitude, mortgages, pledges)5. Inherent limitations arising from conflict with other rights.(contiguity of property)6. Owner cannot make use of thing which shall prejudice 3rd persons. (431)7. State of Necessity (432)8. True Owner must resort to Judicial Process (433)

SEVEN RIGHTS OF OWNERSHIP (AADF PUV)

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1. Jus Abutendi- Right to consume the thing by its use2. Jus Accessiones- Right to accessories3. Jus Disponendi-Right to dispose4. Jus Fruendi- Right to fruits5. Jus Possidendi- Right to possess6. Jus Utendi- Right to enjoy7. Jus Vindicandi- Right to exclude others from possession of the thing

Jurisprudence:1. Roxas vs. CA- “Right to use not necessarily included in right to possess, as in contract of

deposit, since a bailee only holds the property in trust.”2. Jabon vs. Alo- “A judgment of ownership may not include possession, which may be in the

hands of a lessee.”3. Republic vs. Baylosis- “The Right to dispose includes the right not to dispose”

ACTIONS FOR POSSESSION

1. Movable- Replevin (return of a movable)Note: A machinery and equipment used for an industry and indispensable for the carrying of

such industry, cannot be the subject of replevin, because they are real properties.

*** Calub vs. CA- A property that is validly deposited in custodia legis cannot be the subject of a replevin suit.

2. Immovablea. Accion Interdictal

i. Forcible Entry- used by a person deprived of possession through: force, intimidation, strategy, threat or stealth (FISTS) (issue: de facto or physical possession not juridical, must recover within one year from unlawful deprivation, or from discovery in case of stealth or strategy. Summary proceeding)

ii. Unlawful Detainer- used by a lessor/person having legal right over property when lessee/person withholding property refuses to surrender possession of property after expiration of lease/right to hold property (physical possession, must recover within 1 year from unlawful deprivation; date of last demand or last letter of demand); summary proceeding.

b. Accion Publiciana- plenary action to recover the better right of possession; must be brought within a period of 10 years, otherwise the real right of possession is lost; issue is possession de jure; ordinary civil proceeding.

c. Accion Reinvindicatoria- recovery of dominion of property as owner.

*** Sarmiento vs. CA- “Where the facts averred in the complaint reveals that the action is neither one of forcible entry nor unlawful detainer but essentially involves a boundary dispute, the same must be resolved in accion reinvindicatoria.

PRINCIPLE OF SELF-HELP (429)- Use of reasonable force to repel or prevent an actual or threatened unlawful physical invasion or usurpation of property.

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*** German Management & Services vs. CA: “It can only be exercised at the time of an actual or threatened dispossession.”*** May be exercised by a 3rd Person- Negotiorum Gestio

ELEMENTS OF SELF-HELP1. Person exercising rights is the lawful owner or possessor.2. Can only be exercised at the time of an actual or threatened dispossession.3. Use of force may be reasonably necessary to repel or prevent it.

- May be liable for excess force.

Art. 430- Right to enclose or fence w/o detriment to servitudesArt. 431-Obligation to respect rights of others

STATE OF NECESSITY (432)- Principle which authorizes the destruction of a property which is lesser in value to avert the danger poised to another property the value of which is much greater.

** COMPARATIVE DANGER: Danger must be greater than the damage to property. Must consider the economic and sentimental value of the property.** The owner of the sacrificial property is obliged to tolerate the act of destruction but subject to his reimbursement by all those who benefited.** In case of conflict between the exercise of the right of self-help and a proper and licit state of necessity, the latter prevails because there is no unlawful aggression when a person or a group of persons acts pursuant to the right given in a state of necessity.

Art. 433- Possessor has disputable presumption of ownership. Judicial Process.Art. 434- Person claiming a right must prove: (a) That he has a better title to the property and (b) Identity of the property

-One must depend on the strength of his title and not on the weakness of the defense.

Evidence to Prove Ownership.1. Torrens Title.2. Title from Spanish Government3. Patent Duly registered in the Registry of Property by the grantee.4. Deed of Sale5. Operating a Business for nine years in defendant’s own name representing himself to the public to be the owner and the plaintiff never made any protest or objection. (Florida vs. Yearby)6. Occupation of a building for a long time by a party without paying rent (Gatdula vs. Santos)7. A letter in which defendant recognized the ownership of parcels of land for a long time attested not only by witnesses but also by declaration of properties, payment of taxes and a deed of mortgage executed by the possessor’s predecessors-in-interest as owners of the property. (Alano vs. Ignacio)

Additional Jurisprudence:1. Calicdan vs. Cendaña- “A deed of donation inter vivos, albeit void for having been executed by one who was not the owner of the property donated, may still be used to show the exclusive and adverse character of the donee’s possession.”2. Heirs of S. Maningning vs. CA- “While a verbal donation under which the donee and his predecessors-in-interest have been in possession of the lands in question is not effective as a transfer of title, still it is a circumstance which may explain the adverse and exclusive character of the possession.”

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Art. 435- Condemnation or Seizure in the exercise of Power of Eminent Domain.Art. 436- Condemnation or Seizure in the exercise of Police Power.Art. 437- Surface Rights and everything under of a Landowner.

Concept of Hidden Treasure (439)1. Consists of money, jewels or other precious objects.2. Hidden and unknown3. Owner is unknown

Right to Hidden Treasure (438)1. Finder is the same as owner of the property- treasure totally belongs to him.2. Finder is 3rd person and he discovered it by chance- finder is entitled to ½ of the value of the treasure3. Finder is an intruder- he is not entitled to anything4. Finder is given an express permission from the owner- subject to the contract of service and principle of unjust enrichment

RIGHT OF ACCESSION- The right by virtue of which the owner of a thing becomes the owner of everything that it may produce or which may be inseparably united or incorporated thereto either naturally or artificially. (440)

TWO KINDS OF ACCESSION1. Accession Discreta - refers to the right over the fruits or products of a thing.2. Accession Continua- accession things which have been incorporated or attached to a thing.

ACCESSION DISCRETAGeneral rule: The owner of the land owns the fruits.Exceptions: (PULA)1. Possessor in Good Faith of the land.2. Usufructuary3. Lessee gets the fruits of the land4. Antichretic creditor. Fruits apply to interest first if owing and then to principal.

NATURAL FRUITS- spontaneous products of the soil and the young of animalsINDUSTRIAL FRUITS- those produced by lands of any kind through cultivation or laborCIVIL FRUITS- rents of buildings, the price of lease of lands and other property and the amount of perpetual or life annuities or other similar income. (441/442)

PRINCIPLES ON ACCESSION CONTINUA (GONE BAD)1. He who is in Good Faith may be held responsible but will not be penalized.2. To the owner of a thing belongs the extension or increase of such thing.3. Bad faith of one party neutralizes the bad faith of the other.4. There should be no unjust enrichment at the expense of others.5. Bad Faith involves liability for damages.6. Accessory follows the principal.7. Accession exists only if the incorporation is such that separation would either seriously damage the thing or diminish its value.

Art. 443. Obligation of recipient of fruits to reimburse necessary expenses of 3rd person.

OBLIGATIONS

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1. Gathered FruitsPlanter Owner

Planter in GF Keeps fruits No necessity to reimburse the planter of expenses since he

retains the fruitsPlanter in BF Reimbursed for expenses for

production, gathering & preservation

Gets Fruits, pay planter expenses

2. Standing CropsPlanter Owner

Planter in GF Reimbursed for expenses for production, gathering &

preservation

Owns fruits provided he pays planter expenses (forced co-

ownership)Planter in BF Loses Everything, No right to

be reimbursedOwns Fruits

Art. 444. When Natural Fruits and Industrial Fruits Deemed to Exist.

When Male and Female belong to different owners, who own the offspring?Under the Partidas, the owner of the female was considered to be the owner of the young

unless there is a contrary custom or speculation. The legal presumption, in the absence of proof to the contary, is that the calf, as well as its mother belong to the owner of the latter, by the right of accretion. (US vs. Caballero). This is also in accord with the maxim “pratus sequitor ventrem”(The offspring follows the mother)

445-456. RIGHT OF ACCESSION WITH RESPECT TO IMMOVABLE PROPERTY.

Art. 446-Improvements presumed made by owner.Art. 447-Table AArt. 448-Table BArt. 449-BPS in bad faithArt. 450-Alternative Rights of owner of the land where BPS in BFArt. 451-Entitlement to DamagesArt. 452- Right to Reimbursement for necessary expensesArt. 453- Both LO and BPS in BFArt. 454- Applicability of 447 when LO in BF and BPS in GFArt. 455- LO, BPS and OM different personsArt. 456- GF may co-exist with negligence

A. RULES WHEN LAND OWNER (LO) CONSTRUCTS OR PLANTS ON HIS LAND WITH MATERIALS OF ANOTHER (OM). (447)

1. LO and OM in Good Faith; or LO and OM in Bad Faith

LO OMBecomes owner of the materials but must pay for their value.

EXCEPTION: When they can be removed

1. Entitled to reimbursement provided he does not remove them; Or2. Entitled to removal provided there is no substantial injury

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without destruction to the work made or to the plants, in such case the owner of material may removed them.

2. LO in Bad Faith; OM in Good Faith

LO OMBecomes owner of the materials but must pay for their value plus damages.

EXCEPTION: When Owner of the Materials decides to remove them whether or not destruction would be caused. (Absolute Removal). Owner of Materials would still be entitled to damages

1. Entitled to ABSOLUTE RIGHT OF REMOVAL plus damages OR

2. Entitled to reimbursement plus damages in case he chooses not to remove

3. LO in Good Faith; OM in Bad Faith

LO OMExempted from Reimbursement and entitled to damages

No Right!

B. RULES WHEN A 3RD PERSON BUILDS, SOWS OR PLANTS (BPS) ON LANDOWNER’S (LO) LAND. (448)

EXAMPLE: A HOUSE WAS BUILT ON THE LAND.

1. LO and BPS in Good Faith; or LO and BPS in Bad Faith

LO BPSHas a choice either to:1. Appropriate house after payment of indemnity OR2. Compel the builder to buy the land upon which the building was built, unless the value of the land be considerably more than the value of the house—in such case builder pays rent. If builder pays, he has no right of

1. Right to payment of indemnity:a. Necessary Expenses, Right of retention until reimbursed.b. Useful Expenses, Right of retention

2. May remove the ornaments with which he has embellished the principal thing if it suffers no injury thereby, and if his successor in

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retention and LO is entitled to remove improvement.

possession does not prefer to refund the amount expended.

2. LO in Good Faith; BPS in Bad Faith

LO BPS1. Gets the accessory without paying any indemnity, but must pay necessary expenses for preservation of the land. LO is entitled to damages.2. Demand demolition of the work, or that the planting or sowing be removed at the BPS’s expense PLUS damages3. Compel the BPS to pay the price of the land, and the sower the proper rent whether or not the value of the land is considerably more than the value of the house PLUS damages.

1. Loses what is built, planted or sown without right to indemnity.

2. Liability for damages

3.Entitled to reimbursement for necessary expenses of preservation of land

3. LO in Bad Faith; BPS in Good Faith

LO BPSBecomes owner of the materials but must pay for their value plus damages.

EXCEPTION: When Owner of the Materials decides to remove them whether or not destruction would be caused. (Absolute Removal). Owner of Materials would still be entitled to damages

1. Entitled to ABSOLUTE RIGHT OF REMOVAL plus damages OR

2. Entitled to reimbursement plus damages (in case he chooses not to remove)

Remedies if option exercised by the Landowner was compulsory selling and Builder fails to pay:1. Leave things as they are and assume relation of lessor and lessee; pay rents2. Demolish what has been built, sown or planted. (Ignacio vs. Hilario)3. Consider price of land as an ordinary money debt of the builder. Therefore he may enforce payment thru an ordinary action for recovery of a money debt (levy and execution).

ART. 448 (3RD PERSON PLANTS, BUILDS, SOWS) DOES NOT APPLY WHEN:1. The BPS does not claim ownership over the land but possesses it as mere holder, agent, usufructuary or tenant; he knows that the land is not his. (Balucaneg vs. Francisco)

Exception: if a tenant whose lease is about to expire, nevertheless still sows, not knowing that the crops will no longer belong to him.

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2. The BPS is a co-owner, even if later on, during the partition, the portion of the land used is awarded to another co-owner.3. A person constructs a building on his own land, and then sells the land but not the building to another, there could be no question of good faith or bad faith on the part of the builder. He can be compelled to remove the building. The new owner will thus not be required to pay any indemnity for the building. (Coleongco vs. Regalado)4. The builder is a belligerent occupant. (buildings use is temporary, i.e. airfield/campsite)

*** When Landowner sells land to a 3rd person who is in Bad faith, the builder must go against him, but when the 3rd person paid the landowner, the builder may still file a case against him but the 3 rd

person may file a 3rd party complaint against the landowner.

*** Landowner’s alternative right against a SOWER is to demand proper rent.*** 448 applies only when BPS is in GF.

Rule when three parties are involved: (LO, BPS and OM)

1. Rights of LO and BPS the same as preceding tables.2. Rights of OM:

a. BF- Loses all rights to be indemnified. He can even be liable for consequential damages if the materials are of inferior quality.

b. GF- he is entitled to reimbursement from the builder principally since it was the builder who first made use of the materials. In case of insolvency on the part of the builder the LO is subsidiarily liable, if he makes use of the materials.

Rule when OM and BPS in Bad faith; LO in Good Faith

1. As between OM and BPS, good faith must govern. BPS must reimburse OM but in case BPS cannot pay LO will not be subsidiarily liable because as to him OM is in Bad faith.2. LO can ask damages from both, moreover:

a. He may appropriate what has been built as his own, without payment of any indemnity for useful or necessary expenses for the building but with indemnity for the necessary expenses for the preservation of the land.

b. Demand the demolition of the house at builder’s expense.c. Compel the builder to pay the price of the land whether the land is considerably more

valuable than the building or not.

Jurisprudence:1. Sarmiento vs. Agana- “The landowner on which a building has been constructed in good

faith by another has the option to buy the building or sell his land to the builder, he cannot refuse to exercise their option and compel the builder to remove or demolish the improvement. An order by a court compelling a builder in good faith to remove his building from a land belonging to another who chooses neither to pay for such building nor sell the land is null and void for being offensive to Art. 448”

2. Depra vs. Dumlao- “Owner of the land on which an improvement was built by another in good faith is entitled to removal of the improvement only after the landowner has opted to sell the land and the builder refused to pay for the same. Where the land’s value is considerably more than the improvement, the landowner cannot compel the builder to buy the land. In such event, a forced lease is created and the court shall fix the terms thereof in case the parties disagree thereon.”

3. Ballatan vs. CA- “The right to choose between appropriating the improvement or selling the land is given to the owner of the land and not the court.”

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4. Pleasantville Development Corporation vs. CA- “A lot buyer who constructs improvements on the wrong property erroneously delivered by the owner’s agent, honestly believing that the said lot was what he brought from the seller, is NOT guilty of negligence and his violation of the contract of sale or instalment may not be the basis to negate the presumption of good faith as such violation has no bearing on his state of mid at the time he built the improvements.”

5. Pecson vs. CA- “Parties may agree that Art. 448 and 546 are applicable and indemnity for the improvements may be paid although they differ as to the basis of the indemnity.”

6. Manila Railroad Co. vs. Paredes- “When Manila Railroad Co. built its track on a land without any opposition from the owner who merely stood by, the owner was deemed to have waived his right to recover possession of his property and the construction thereon. His only remedy would be to recover damages for the value of the property taken considering that the corporation merely exercised its power of eminent domain as authorized by law.”

7. Nuguid vs. CA- “Offsetting necessary and useful expenses with the fruits received by the builder-possessor in good faith is not allowed.”

8. Manotok Realty, Inc. vs. Tecson- “Where the improvements have been destroyed by a fortuitous event without the fault of the landowner, the basis for the builder’s right to retain the premises is extinguished; hence there is no other recourse for him but to vacate the premises and deliver the same to the landowner.”

9. Calapan Lumber Co. vs. Community Sawmill Co.- “The right of retention of a builder in good faith until payment of the proper indemnity does not apply to property of public domain. The builder may however be entitled to the cost of construction with interest upon securing authorization of proper authorities or designate such road a toll road to raise the funds necessary to reimburse the company.”

10. Mendoza vs. Deguzman- “Once the owner elects to appropriate the improvements, the BPS cannot exactly be considered a possessor in good faith. Hence, whatever fruits he receives during the pendency of retention must be deducted from whatever indemnity is due to him; and in case it exceeds the value of the indemnity, the excess shall be returned to the owner of the land.”

11. Sps. Del Ocampo vs. Obesia- “A co-owner is not a 3rd Person with respect to the land owned in common for it cannot be said that it exclusively belongs to another but of which he is a co-owner. However, if the co-ownership is terminated by partition and it appears that the house of the defendant (a former co-owner) overlaps or occupies a portion of the land pertaining to the plaintiff (another former co-owner) which the defendant build in good faith, then Art. 448 should apply even when there was a co-ownership.”

ALLUVIUM- soil imperceptibly and gradually deposited on lands adjoining the banks of rivers caused by the

current of water.

ACCRETION- is the process whereby the soil is deposited

ESSENTIAL ELEMENTS OF ALLUVIUM (AGA)1. Result of the ACTION of the waters of the river.2. Deposit of soil and sediment be GRADUAL and imperceptible.3. The land where accretion takes place is ADJACENT to the banks of river.

Riparian Owners- are owners of lands adjoining the banks or rivers.Littoral Owners- owners of lands bordering the shore of the sea or lake or other tidal waves.

Jurisprudence:

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1. Binalay vs. Manalo- “A sudden and forceful action like that of flooding is not the alluvial process contemplated under Art. 457. It is the slow and hardly perceptible accumulation of sould deposits that the law grants to the riparian owner.”

2. Ignacio vs. Director of Lands- “Art. 457 does not apply where the accretion is caused by action of Manila Bay, it being a part of the sea, a mere indentation of the same. Until a formal declaration on the part of the government through the executive or legislative, to the effect that such lands are no longer needed for coast guard service, for public use, or for special industries, they continue to be part of the public domain.”

3. Republic vs CA- “Laguna de Bay is a lake and that part around it which becomes covered with water, not due to tidal action, but due to rain, cannot be considered part of the bed or basin of the bay nor as foreshore lands, and therefore registrable under the Torrens System.”

4. Viajar vs. CA- “Registration does not protect the riparian owner against diminution of the area of his land thorugh gradual changes in the course of the adjoining stream.”

5. Heirs of E. Navarro vs. IAC- “An alluvion, although by mandate of Art. 457 is automatically owned by the riparian owner from the moment the soil deposit can be seen, does not automatically become registered land, just because the lot which receives such accretion is covered by a Torrens title, thereby making the alluvial property imprescriptible.”

6. Reynante vs.CA- “Alluvial deposit acquired by a riparian owner of registered land by accretion may be subjected to acquisition through prescription by a 3 rd person, by failure of such owner to register said accretion within the prescribed period.”

7. Ronquillo vs. CA- “Rules on alluvion do not apply to man-made or artificial accretions to lands that adjoin canals or esteros or artificial drainage system.

Art. 458- Estates adjoining ponds or lagoons, owners do not acquire land left dry.

AVULSION- process whereby a portion of land is segregated from an estate by the current of a river, creek or torrent and transferred to another estate. [459]

Elements of Avulsion:1. The segregation and transfer must be caused by the current of a river, creek, or torrent.2. Sudden or Abrupt3. Portion of Land must be known or identifiable

*** The former owner preserves his ownership of the segregated portion provided he removes (not merely claims) the portion within 2 years. [459]

Art. 460. Trees uprooted and carried away by the current belong to owner of land which they may be cast, if the owners do not claim them within 6 months.Art. 461. River beds abandoned through natural change in the course of the waters.

Requisites of Change of River Beds:1. Change must be sudden in order that the old river bed may be identified.2. The changing of the course must be more or less permanent and not temporary overflooding another’s land.3. The change must be a natural one, i.e. caused by natural forces.4. There must be a definite abandonment by the government 5. The river must continue to exist that is, it must not completely dry up or disappear.

Right of Owner of Land Occupied by New River Course1. Right to old bed ipso facto in proportion to area lost.

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2. Owner of adjoining land to old bed shall have right to acquire the same by paying its value –value not to exceed the value of area occupied by new bed.

Art. 462. New Bed through private estate becomes of public dominion.Art. 463. River divides itself into branches forming an island.

1. Isolation of a piece of land or part thereof (without being physically transferred to another place).2. Separation(or physical transfer) of a portion of land from an estate by the current.

Islands belong to State: (464)1. Formed on the seas within the jurisdiction of the Phils.2. On lakes3. On navigable or floatable rivers

Islands formed in non-navigable or non-floatable rivers (465)- Island shall pertain and belong to the owners of the margins or banks of the river nearest to each of them- if in the middle of the river- it shall be divided longitudinally in halves.

RIGHT OF ACCESSION WITH RESPECT TO MOVABLE PROPERTY

Adjunction or Conjunction- union of two movable things belonging to different owners in such a way that they form a single object, but each one of the component things preserves its value. [466]

Kinds of Adjunction (ISTEP)

1. Inclusion (engraftment)- such as setting a precious stone on a ring2. Soldadura (soldering)- such as joining a piece of metal to another metal.

a. ferruminacion- same metalsb. plumbatura- different metals

3. Tejido (weaving)- such as when threads belonging to different owners are used in making textile4. Escritura (writing)- such as when a person writes on paper belonging to another5. Pintura (painting)- such as when a person paints on canvas belonging to another

Tests to determine principal in adjunction (467/468)

1. Rule on Importance of Purpose (467)- To which the other (accessory) has been united as an ornament or for its use or perfection.2. Of greater value, if they are of unequal values (468)3. Of greater volume, if they are of an equal value (468)4. Of greater merits taking into consideration the comparative merits, utility and volume of their respective things (475)

When Separation Allowed 1. Separation without injury (469)2. Separation with injury- accessory is much precious than the principal, the owner of the former may demand its separation even though the principal may suffer injury. (469)3. Owner of the principal in bad faith. (470)

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1. OWNER OF PRINCIPAL (OP) AND OWNER OF ACCESSORY(OA) IN GOOD FAITH/BAD FAITH

OP OAAcquires the accessory, indemnifying the OA for its value

May separate them if no injury will be caused;If value of accessory is greater than principal, OA may demand separation even if damages may be caused to the principal (expenses to be borne by the one who caused the conjunction)

2. OP in Good Faith; OA in Bad faithOP OA

Owns the accessory plus damages Loses the thing incorporated and indemnify OP for damages

3. OP in Bad faith; OA in Good Faith OP OA

1. Pay OA value of accessory PLUS DAMAGES OR2. Principal and accessory be separatedPLUS DAMAGES

Right to choose between1. OP paying him the value or2. That the thing be separated even if principal will be destroyedBoth with right to damages

Art.471 Form of Indemnity. (Thing equal in kind/value or price)

Art. 472/473.Mixture- takes place when two or more things belonging to different owners are mixed or combined with the respective identities of the component parts destroyed or lost.

Two Kinds:1. Commixtion- or the mixture of solid things belonging to different owners.2. Confusion- or the mixture of liquid things belonging to different owners.

Rules:1. Mixture by will of the owners- Their rights shall be governed by their stipulations. Without stipulation, each acquires a right or interest in proportion to the value of his material.2. Mixture caused by an owner in GF or by chance- each share shall still be in proportion to the value of their thing.3. Mixture caused by the owner in BF- the actor forfeits his things and is liable for damages.

Art. 474. Specification.- means the giving of a new form to a material belonging to another person through the application of labor or industry.

RULES:1. When the maker (considered principal) is in GF

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a. Appropriate but must indemnify the owner of the materialb. May not appropriate –material transformed is worth more than the new thing. The OM may i. appropriate the new thing subject to payment of the value of the work or

ii. demand indemnity for material with damages .

2. When the maker is in BFa. OM can appropriate the work without paying for the labor or industryb. OM can demand indemnity plus damages c. OM cannot appropriate if the value of the work is considerably more than the value of the

material due to artistic or scientific importance.

COMPARISON OF THE 3 TYPES ACCESSION OF MOVABLESAdjunction Mixture Specification

Involves at least 2 things Involves at least 2 things Involves at least 2 thingsAccessory follows principal Co-ownership results Accessory follows principalThings joined retain their nature

Things joined Either retain or lose their nature

The new object retains or preserves the nature of the original object

QUIETING OF TITLE (476)

Reasons:1. prevent litigation2. protect true title and possession3. real interest of both parties which requires that precise state of title be known

Action to Quiet Title-put an end to vexatious litigation in respect to property involved; plaintiff asserts his own estate and generally declares that defendant’s claim is without foundation-remedial-not suits in rem nor personam but suits against a particular person/s in respect to the res(quasi in rem)-may not be brought for settling boundary disputes (Vda. De Aviles vs. CA)-applicable to any property or interest therein. The law however, does not exclude personal property from actions to quiet title.-an action to quiet title brought by the person in possession of the property is IMPRESCRIPTIBLE.-if he is not in possession, he must invoke his remedy within the prescriptive period.

Classification1. Remedial Action- one to remove cloud on title2. Preventive Action- one to prevent the casting of a (threatened) cloud on the title

Action to Remove Cloud-intended to procure cancellation, delivery, release of an instrument, encumbrance or claim constituting a plaintiff’s title which may be used to injure or vex him in the enjoyment of his title.-preventive

Cloud- any instrument which is inoperative but has semblance of title.

Requisites:

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1. Plaintiff must have a legal or equitable title or interest. (477)2. Need not be in possession of the property, but must invoke within prescriptive period. (Gallar vs. Hussain)3. The cloud must be due to an instrument, record, claim encumbrance or proceeding which is apparently valid or effective but in truth and in fact invalid, ineffective, voidable or unenforceable, or has been extinguished or terminated or has been barred by extinctive prescription (478), and such instrument may be prejudicial to said title.4. Plaintiff must return to the defendant all benefits he may have received from the latter or reimburse him for expenses that may have redounded to his benefit. (479)

Instances of Cloud of title1. An absolute fictitious contract of sale or a sale with simulated consideration.2. A sale by an agent without written authority or after expiration of his authority.3. A forged contract.4. A contract of sale or donation which has become inoperative because of non-performance by the vendee or donee of a condition precedent.5. A voidable contract.

Prescriptive Period:1. Plaintiff in possession- imprescriptible2. Plaintiff not in possession- 10 (ordinary); 30(extraordinary)

Action to quiet title does not apply:1.To questions involving interpretation of documents.2. For mere written or oral assertions of claims, except:

a. if made in a legal proceedingb. if it is being asserted that the instrument or entry in plaintiff’s favor is not what it purports to

be.3. To boundary disputes(ibid)4. To deeds by strangers to the title UNLESS purporting to convey the property of the plaintiff.5. Where the validity of the instrument involves pure questions of law.

DISTINCTIONS BETWEEN ACTION TO QUIET TITLE & ACTION TO REMOVE CLOUDBasis Action to Quiet Title Action to Remove Cloud

Purpose Put an end to vexatious litigation

Procure cancellation, release of an instrument, encumbrance or claim in the plaintiff’s title which affects the title or enjoyment of the property

Nature Plaintiff asserts own claim and declares that the claim of the defendant is unfounded and calls on the defendant to justify his claim on the property that the same may be determined by the court

Plaintiff declares his own claim and title, and at the same time indicates the source and nature of the defendant’s claim, pointing its defects and prays for the declaration of its invalidity

Jurisprudence:1. Heirs of M. Nagaño vs. CA- “Free Patent issued over private land is null and void”

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2. Roman Catholic Archbishop of Caceres vs. Heirs of M. Abella- “The finding in the case for quieting title prevails over the ruling in the forcible entry case.”

3. Metropolitan Bank & Trust Co. vs. Alejo- “The judgment of trial court cancelling the TCT in the name of the mortgagor without notice to the mortagee-bank cannot be considered a cloud on the mortgagee’s title or interest over the property, which does not have any semblance of a title.”

RUINOUS BUILDINGS AND TREES IN DANGER OF FALLING (482 & 483)

Liability for Damages1. collapse within 15 years from completion- engineer, architect or contractor (1723)2. in danger of falling–state may compel owner to demolish or make necessary work to prevent from falling (482.1)3. if no action by owner- done by government at the expense of owner (482.2)

***The complainant must show that his property is adjacent to the dangerous construction, or must have to pass by necessity in the immediate vicinity.

Jurisprudence:*Juan F. Nakpil & Sons vs. CA- “The contractor and architect are liable for the damage

sustained by a building because of an earthquake. Having made substantial deviations from the plans and specifications, having failed to observe requisite workmanship in construction, and the architect made plans that contain defects and inadequacy, both of them cannot escape liability. To constitute an act of God the following requisites must concur: 1) the cause of the breach of obligation must be independent of the will of the debtor 2) the event must be either unforeseeable or unavoidable 3) the event must be such as to render it impossible for the debtor to fulfil his obligation in a normal manner 4) the debtor must be free from any participation in or aggravation of the injury to the creditor.

CO-OWNERSHIP- is that form of ownership which exists whenever an undivided thing or right belongs to different persons. (484)

Requisites:1. Plurality of Subjects—many owners2. unity of material (indivision of object) of ownership3. recognition of ideal shares

Causes/Sources (LCS FOD)1. law- i.e. easement of part walls; absolute community of property b/w spouses2. contracts3. succession4. fortuitous event or by chance- commixtion5. occupancy—2 persons catch a wild animal6. donation

Kinds of Co-Ownership (LOC CUSI)1. Legal- created by law 2. Ordinary- Right of partition exists 3. Compulsory- no right of partition exists (party wall)4. Contractual- created by contract5. Universal- over universal things (co-heirs)6. Singular or Particular-over particular or specific thing

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7. Incidental- exists independently of the will of the parties

DISTINGUISHED FROM PARTNERSHIPCO-OWNERSHIP PARTNERSHIP

Legal Personality No Legal Personality Has legal/juridical personalitySource Created by contract or other

thingsCreated by contract only (express or implied)

Purpose Collective enjoyment of a thing ProfitTerm Agreement for it to exist for 10

years—valid(if more than 10 years, the excess is void)

NOTE: 20 years is the maximum if imposed by the testator or donee of the common property

No term limit set by law

Representation As a rule, no mutual representation

As a rule, there is mutual representation

Effect of Death Not dissolved DissolvedSubstitution Can dispose of his share

without consent of othersCannot substitute another as a partner in his place without consent of others

Profits Must always depend on proportionate shares

May be stipulated upon

DISTINGUISHED FROM JOINT TENANCYCO-OWNERSHIP JOINT TENANCY

Shares Involves a physical whole. But there is an ideal (abstract) division; each co-owner being the owner of his ideal share

Involves a physical whole. But there is no ideal (abstract) division; each and all of them own the whole thing.

Disposal of Shares Each co-owner may dispose of his ideal or undivided share (without boundaries) without the other’s consent

Each co-owner may not dispose of his own share without the consent of all the rest, because he really has no ideal share

Effect of Death If a co-owner dies his share goes to his own heirs

If a joint tenant dies, his share goes by accretion to the other joint-tenants by virtue of their survivorship or jus accrecendi

Effect of Disability If a co-owner is a minor, this does not benefit the others for the purpose of prescription, and prescription therefore runs against them.

If one joint-tenant is under legal disability (like minority), this benefits the other against whom prescription will not run

RIGHTS OF CO-OWNERS (BUCA CERF APPRAP)

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1. Rights to benefits proportional to respective interests; stipulation to the contrary is void. (485)2. Right to use the thing co-owned (486)

a. for purpose for which it was intendedb. without prejudice to interest of ownershipc. without preventing other co-owners from making use thereof

3. Right to change purpose of co-ownership by agreement (486)4. Right to bring an action for ejectment in behalf of the other co-owner (487)5. Right to compel co-owners to contribute to necessary expenses and taxes (488)6. Right to exempt himself from obligation of paying necessary expenses and taxes by renouncing his share in the pro-indiviso interest; but can’t be made if prejudicial to co-ownership (488)7. Right to make repairs for preservation of things can be made at will of one co-owner; receive reimbursement therefrom; notice of necessity of such repairs must be given to co-owners, if practicable. (489)8. Right to full ownership of his part and fruits. (493)9. Right to alienate, assign or mortgage own part; except personal rights like right to use and habitation. (493)10. Right to ask for partition anytime (494)11. Right to pre-emption (in relation to imprescriptibility-494)12. Right to redemption in case the shares of all the other co-owners or any of them are sold to a 3rd person (Cadag vs. Trinanes) (1620)13. Right to be adjudicated the thing (subject to right of others to be indemnified)14. Right to share in proceeds of sale of thing if thing is indivisible and they cannot agree that it be allotted to one of them. (498)

DUTIES/LIABILITIES OF A CO-OWNER1. Share in charges proportional to respective interest; stipulation to the contrary is void.(485)2. Pay necessary expenses and taxes—may be exercised only by one co-owner. (488)3. Pay useful and luxurious expenses if determined by majority (489, 492)4. Duty to obtain consent of all if the thing is to be altered even if beneficial; resort to court if non-consent is manifestly prejudicial. (491)5. Duty to obtain consent of majority with regards to the administration and better enjoyment of the thing; controlling interest; court intervention if prejudicial—appointment of administrator. (492)6. No prescription to run in favor of a co-owner as long as he recognizes the co-ownership (494); requisites for acquisition through prescription:

a. he has repudiated through unequivocal actsb. such act of repudiation is made known to the other co-ownersc. evidence must be clear and convincingd. his possession is open, continuous, exclusive and notorious. (Addille vs. CA)

7. Co-owners cannot ask for physical division if it would render the thing unserviceable; but can terminate co-ownership. (495)8. After partition, duty to render mutual accounting of benefits and reimbursement of expenses (500)9. Indemnity for damages caused by reason of negligence and fraud. (500)10. Reciprocal warranty for defects of title or quality of the portion assigned to the owner.(500)

PARTITION.- The division between two or more persons of real or personal property which they own in common so that each may enjoy and possess his sole estate to the exclusion of and without interference from others.

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General Rule: No co-owner shall be obliged to remain in the co-ownership. Each co-owner may at any time demand the partition of the thing owned in common, insofar as his share is concerned. (494)Exception: When a co-owner may not successfully demand a partition1. If by agreement (for a period not exceeding 10 years) partition is prohibited. (494)2. When partition is prohibited by a donor or testator (for a period not exceeding 20 years) from whom the property came. (494)3. When partition is prohibited by law. (494)4. When a physical partition would render the property unserviceable (495), but in this case, the property may be allotted to one of the co-owners, who shall indemnify the others, or in case of disagreement it will be sold, and the proceeds distributed. (498)5. When the legal nature of the common property does not allow partition.

PRESCRIPTIONGeneral Rule: Prescription does not adversely affect a co-owner or co-heir. A co-owner cannot acquire the whole property as against the other co-owners.Exception: valid repudiation—prescription shall start from such repudiationException to the Exception: In constructive trusts prescription does not run.

Positive Acts of Repudiation1. Filing by a trustee of an action in court against a trustor to quiet title to property or for recovery of ownership thereof, held in possession by the former, may constitute an act of repudiation of the trust reposed on him by the latter.2. The issuance of the certificate of title, and the lapse of more than 20 years, open and adverse possession as owner would certainly suffice to vest title by prescription.3. An action for reconveyance of land based on implied or constructive trust prescribes within 10 years and it is from the date of the issuance of such title that the effective assertion of adverse title for purposes of the statute of limitation is counted.4. When one who is an apparent administrator of property causes the cancellation of the title thereto in the name of the apparent beneficiaries and gets a new certificate of title in his own name.5. Execution of a deed of partition and on the strength thereof cancellation of title to the property was obtained in the name of the predecessor and the issuance of a new one wherein plaintiff appears as new owner. (De lima vs. CA)

Art. 497. Creditors or Assignees of co-owners cannot impugn any partition already executed unless there has been fraud or made notwithstanding a formal opposition.

EXTINGUISHMENT OF CO-OWNERSHIP (CALSTEP)1. Consolidation or merger in one co-owner.2. Acquisitive prescription in favor of a 3rd person or a co-owner who repudiates the co-ownership.3. Loss or destruction of property co-owned.4. Sale of property co-owned5. Termination of period agreed upon by the co-owners.6. Expropriation7. Partition (Judicial or Extrajudicial)

TERMINATION OF CO-OWNERSHIP

Jurisprudence:

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1. Mariano vs. CA- “Redemption of the whole property by a co-owner does not vest in him sole ownership over said property. Redemption within the period prescribed by law by a co-owner will inure to the benefit of all co-owners. Hence, it will not put an end to existing co-ownership.”

2. Cabigao vs. Lim- “Accounting should be with respect to net proceeds not the gross proceeds derived from the sale”

3. Aguilar vs. CA- “When petitioner filed an action to compel the sale of the property and the trial court granted the petition, the co-ownership was deemed terminated and the right to enjoy the possession jointly also ceased. Thereafter, the continued stay of respondent and his family in the house prejudiced the interest of the petitioner as the property should have been sold and the proceeds divided equally between them. Respondent should be held liable for monthly rentals.”

3. Barreto vs. CA- “Even if a co-owner sells the whole property as his own, or without the consent of the other co-owners, the sale is valid insofar as his ideal quota is concerned unless the sale is authorized by the other co-owners.”

4. Vda. De Castro vs. Atienza- “If a lease could be entered into partially by a co-owner insofar as his interest is concerned, then, he can also cancel his own lease independently of the other co-owner. Therefore, a co-owner who cancels a lease of his share of a property is liable on his express undertaking to refund the advance rental paid to him by the lessee.”

5. Tuason vs. Tuason- “When co-owners agreed to subdivide a parcel of land into small lots and then divide the parcels among them, such obligation is a mere incident to the main object of dissolving the co-ownership. By virtue of the document the parties thereto practically and substantially entered into a contract of partnership as the ebst and most expedient means of eventually dissolving the co-ownership.”

6. Vda. De Espina vs. Abaya- “The Statute of Frauds does not apply to partition because it is not legally deemed a conveyance or a sale of property resulting in change of ownership but simply a segregation and designation of that part of the property which belongs to each of the co-owners.”

7. De Santos vs. Bank of Phil. Islands- “Creditors and assignees have the right to be notified of a partition, such absence would make the partition executed not binding on them.”

8. Laguna vs. Levantino-“The sole fact of a co-owner having declared the lands in question in his name for tax purposes nor the payment of land taxes, constitutes no such unequivocal act of repudiation amounting to an ouster of the other co-owner and cannot constitute adverse possession as basis for title by prescription.”

9. Adille vs. CA- “The torrens title does not furnish shield of fraud. Thus, where one registered the property in question in his name in fraud of his co-heirs, prescription can only be deemed to have commenced from the time the latter discovers the fraudulent act.”

PERPENDICULAR CO-OWNERSHIP.--Different stories of a house belong to different owners. Although there are apparently separate and distinct properties, these are indestructively united for their ornamentation and use and even for their very existence with other necessary and essential things which are the main and party walls, the roof and other things used in common. (490)-- This is to be distinguished from a CONDOMINIUM, which is a building consisting of several stories, each story being divided into different units owned by different persons who are members or shareholders of a condominium corporation.

CONDOMINUM ACT (RA 4726)

Condominium- an interest in real property consisting of a separate interest in a unit in a residential, industrial, or commercial building and an undivided interest in common directly or indirectly, in the land on which it is located and in other common areas of the building.

*Title to the common areas may be held by a corporation specially formed for the purpose, in which holders of separate interests automatically become members or shareholders.

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Unit- means a part of the condominium project intended for any type of independent use or ownership, including accessories appended.

Project- the entire parcel of real property divided, including all structures thereon.

Common areas- means the entire project excepting all units separately granted or held or reserved.

To divide real property- means to divide the ownership thereof or other interest therein by conveying one or more condominiums therein but less than the whole thereof.

APPLICABILITY:Property divided or to be divided into condominiums only if there shall be recorded in the Register of Deeds of the province or city in which the property lies and duly annotated in the corresponding certificate of title of the land, if the latter had been patented or registered under either the Land Registration or Cadastral Acts, an enabling or master deed which shall contain, among others, the following:

(a) Description of the land on which the building or buildings and improvements are or are to be located; (b) Description of the building or buildings, stating the number of stories and basements, the number of units and their accessories, if any; (c) Description of the common areas and facilities; (d) A statement of the exact nature of the interest acquired or to be acquired by the purchaser in the separate units and in the common areas of the condominium project. Where title to or the appurtenant interests in the common areas is or is to be held by a condominium corporation, a statement to this effect shall be included; (e) Statement of the purposes for which the building or buildings and each of the units are intended or restricted as to use; (f) A certificate of the registered owner of the property, if he is other than those executing the master deed, as well as of all registered holders of any lien or encumbrance on the property, that they consent to the registration of the deed; (g) The following plans shall be appended to the deed as integral parts thereof:

(1) A survey plan of the land included in the project, unless a survey plan of the same property had previously bee filed in said office;

(2) A diagrammatic floor plan of the building or buildings in the project, in sufficient detail to identify each unit, its relative location and approximate dimensions; (h) Any reasonable restriction not contrary to law, morals or public policy regarding the right of any condominium owner to alienate or dispose of his condominium.

TRANSFER OR CONVEYANCE

Any transfer or conveyance of a unit or an apartment, office or store or other space therein, shall include the transfer or conveyance of the undivided interests in the common areas or, in a proper case, the membership or shareholdings in the condominium corporation: Provided, however, That where the common areas in the condominium project are owned by the owners of separate units as co-owners thereof, no condominium unit therein shall be conveyed or transferred to persons other than Filipino citizens, or corporations at least sixty percent of the capital stock of which belong to Filipino citizens, except in cases of hereditary succession.

Incidents of a condominium grant

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(a) The boundary of the unit granted are the interior surfaces of the perimeter walls, floors, ceilings, windows and doors thereof. The following are not part of the unit bearing walls, columns, floors, roofs, foundations and other common structural elements of the building:lobbies, stairways, hallways, and other areas of common use, elevator equipment and shafts, central heating, central refrigeration and central air-conditioning equipment, reservoirs, tanks, pumps and other central services and facilities, pipes, ducts, flues, chutes, conduits, wires and other utility installations, wherever located, except the outlets thereof when located within the unit. (b) There shall pass with the unit, as an appurtenance thereof, an exclusive easement for the use of the air space encompassed by the boundaries of the unit as it exists at any particular time and as the unit may lawfully be altered or reconstructed from time to time. Such easement shall be automatically terminated in any air space upon destruction of the unit as to render it untenantable. (c) Unless otherwise, provided, the common areas are held in common by the holders of units, in equal shares, one for each unit. (d) A non-exclusive easement for ingress, egress and support through the common areas is appurtenant to each unit and the common areas are subject to such easements. (e) Each condominium owner shall have the exclusive right to paint, repaint, tile, wax, paper or otherwise refinish and decorate the inner surfaces of the walls, ceilings, floors, windows and doors bounding his own unit. (f) Each condominium owner shall have the exclusive right to mortgage, pledge or encumber his condominium and to have the same appraised independently of the other condominiums but any obligation incurred by such condominium owner is personal to him. (g) Each condominium owner has also the absolute right to sell or dispose of his condominium unless the master deed contains a requirement that the property be first offered to the condominium owners within a reasonable period of time before the same is offered to outside parties;

GENERAL Rule: Common areas shall remain undivided and there shall be no judicial partition thereof:EXCEPTIONS:(a) That three years after damage or destruction to the project which renders material part thereof unit for its use prior thereto, the project has not been rebuilt or repaired substantially to its state prior to its damage or destruction, or (b) That damage or destruction to the project has rendered one-half or more of the units therein untenantable and that condominium owners holding in aggregate more than thirty percent interest in the common areas are opposed to repair or restoration of the project; or (c) That the project has been in existence in excess of fifty years, that it is obsolete and uneconomic, and that condominium owners holding in aggregate more than fifty percent interest in the common areas are opposed to repair or restoration or remodeling or modernizing of the project; or (d) That the project or a material part thereof has been condemned or expropriated and that the project is no longer viable, or that the condominium owners holding in aggregate more than seventy percent interest in the common areas are opposed to continuation of the condominium regime after expropriation or condemnation of a material portion thereof; or

(e) That the conditions for such partition by sale set forth in the declaration of restrictions, duly registered have been met.

DECLARATION OF RESTRICTIONS(a) As to any such management body;

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(b) The manner and procedure for amending such restrictions: Provided, That the vote of not less than a majority in interest of the owners is obtained. (c) For independent audit of the accounts of the management body; (d) For reasonable assessments to meet authorized expenditures, each condominium unit to be assessed separately for its share of such expenses in proportion (unless otherwise provided) to its owners fractional interest in any common areas; (e) For the subordination of the liens securing such assessments to other liens either generally or specifically described; (f) Such right to partition or dissolution may be conditioned upon failure of the condominium owners to rebuild within a certain period or upon specified inadequacy of insurance proceeds, or upon specified percentage of damage to the building, or upon a decision of an arbitrator, or upon any other reasonable condition.

Term of a condominium corporation. Co-terminus with the duration of the condominium project, the provisions of the Corporation Law to the contrary notwithstanding.

Involuntary dissolution of a condominium corporation. Effect.The common areas owned or held by the corporation shall, by way of liquidation, be transferred pro-indiviso and in proportion to their interest in the corporation to the members or stockholders thereof, subject to the superior rights of the corporation creditors. Such transfer or conveyance shall be deemed to be a full liquidation of the interest of such members or stockholders in the corporation. After such transfer or conveyance, the provisions of this Act governing undivided co-ownership of, or undivided interest in, the common areas in condominium projects shall fully apply.

Corporation not Voluntary Dissolved if Master deed not revoked, except if conditions on partition is present(Sec. 8).

Affirmative vote of all the stockholders or members thereof at a general or special meeting duly called for the purpose, dissolves the corporation provided requirements of Corporation Law complied.

Affirmative vote of all the stockholders or members necessary to dispose, lease, exchange of common areas owned or held by it in the condominium project

WATER CODE OF THE PHILIPPINES (PD 1067)

Ownership of Waters

The following belong to the state: (RCL SASS)a. Rivers and their natural beds; b. Continuous or intermittent waters of springs and brooks running in their natural beds and the beds themselves c. Natural lakes and lagoons; d. All other categories of surface waters such as water flowing over lands, water form rainfall whether natural or artificial, and water from agriculture runoff, seepage and drainage; e. Atmospheric water; f. Subterranean or ground water; and g. Seawater

The following waters found on private lands also belong to the State (CLRSS)a. Continuous or intermittent waters rising on such lands; b. Lakes and lagoons naturally waters rising on such lands;

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c. Rain water and falling on such lands; d. Subterranean or ground waters; and, e. Waters in swamps and marshes.

*The owner of the land where the water is found may use the same for domestic purposes without securing a permit, provided that such use shall have been registered, when required by the Council. The Council, however, may regulate such use when there is wastage, or in times of emergency.* Any person who captures or collects water by means of cisterns, tanks, or pools shall have exclusive control over such water and the right to dispose of the same.* Water legally appropriated shall be subject to the control of the appropriator from the moment it reaches the appropriator's canal or aqueduct leading to the place where the water will be used or stored and, thereafter, so long as it is being beneficially used for the purposes for which it was appropriated.

APPROPRIATION OF WATERS (DMIP FLIRO)a. Domesticb. Municipal c. Irrigationd. Power generatione. Fisheriesf. Livestock raisingg. Industrialh. Recreationali. Other purposes

**A person may appropriate or use natural bodies of water without securing a water permit for any of the following. a. Appropriation of water by means of hand carried receptacles; and b. Bathing or washing, watering or dipping of domestic or farm animals, and navigation of watercrafts or transportation of logs and other objects by flotation.

**Only citizens of the Philippines, of legal age, as well as juridical persons, who are duly qualified by law to exploit and develop water resources, may apply for water permits.

**Water rights may be lent or transferred in whole or in part to another person with prior approval of the Council, after due notice and hearing.

**A holder of a water permit may demand the establishment of easements necessary for the construction and maintenance of the works and facilities needed for the beneficial use of the waters to be appropriated subject to the requirements of just compensation and to the following conditions: a. That he is the owner, lessee, mortgage or one having real right over the land upon which he purposes to use water; and b. That the proposed easement is the most convenient and the least onerous to the servient estate.

**The utilization of subterranean or ground water shall be coordinated with that of surface waters such as rivers, streams, springs and lakes, so that a superior right in one is not adversely affected by an inferior right in the other.

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For this purpose, the Council shall promulgate rules and regulations and declare the existence of control areas for the coordinated development, protection, and utilization of subterranean or ground water and surface waters.

Control area is an area of land where subterranean or ground water and surface water are so interrelated that withdrawal and use in one similarly affects the other. The boundary of a control area may be altered from time to time, as circumstances warrant.

**Water contained in open canals, aqueducts or reservoirs of private persons may be used by any person for domestic purpose or for watering plants as long as the water withdrawn by manual methods without checking the stream or damaging the canal, aqueduct or reservoir; Provided, That this right may be restricted by the owner should it result in loss or injury to him.

** When a drainage channel is constructed by a number of persons for their common benefit, cost of construction and maintenance of the channel be borne by each in proportion to the benefits derived.

** When artificial means are employed to drain water from higher to lower land, the owner of the higher land shall select the routes and methods of drainage that will cause the minimum damage to the lower lands, subject to the requirements of just compensation.

** When a water resources project interferes with the access of landowner to a portion of his property or with the conveyance of irrigation or drainage water, the person or agency constructing the project shall bear the cost of construction and maintenance of the bridges, flumes and other structures necessary for maintaining access, irrigation, or drainage in addition to paying compensation for land and incidental damages.

**Lower estates are obliged to receive the waters which naturally and without the intervention of man flow from the higher estates, as well as the stones or earth which they carry with them.

The owner of the lower estate can not construct works which will impede this natural flow, unless he provides an alternative method of drainage; neither can the owner of the higher estate make works which will increase this natural flow.

**The banks or rivers and streams and the shores of the seas and lakes throughout their entire length and within a zone of three (3) meters in urban areas, twenty (20) meters in agricultural areas and forty (40) meters in forest areas, along their margins, are subject to the easement of public use in the interest of recreation, navigation, flotage, fishing and salvage. No person shall be allowed to stay in this zone longer than what is necessary for recreation, navigation, flotage, fishing or salvage or to build structures of any kind.

**Any person may erect levees or revetments to protect his property from flood, encroachment by the river or change in the course of the river, provided that such constructions does not cause damage to the property of another.

**When a river or stream suddenly changes its course to traverse private lands, the owners or the affected lands may not compel the government to restore the river to its former bed; nor can they restrain the government from taking steps to revert the river or stream to its former course. The owners of the lands thus affected are not entitled to compensation for any damage sustained thereby. However, the former owners of the new bed shall be the owners of the abandoned bed proportion to the area lost by each.

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The owners of the affected lands may undertake to return the river or stream to its old bed at their own expense; Provided, That a permit therefore is secured from the Secretary of Public Works, Transportation and Communication and work pertaining thereto are commenced within two years from the changes in the course of the river or stream.

Possession- The holding of a thing or the enjoyment of a right.

Requisites: (OIR)1. Occupancy, apprehension, or taking of a thing or right (possession in fact)2. Deliberate intention to possess (animus possidendi)3. By virtue of one’s own right—in his own name or in that of another. (524)

Forms or Degrees of Possession (WJJF)

1. Possession without any title—mere holding without any right at all. Ex. Thief or squatter.2. Possession with juridical title—predicated on juridical relation existing between the possessor and the owner. Ex. Lessee, usufructuary, depositary, agent, pledgee and trustee.3. Possession with just title sufficient to transfer ownership. Ex. Seller is not the true owner or could not transmit his right thereto to a possessor who acted in GF.4. Possession with a title in fee simple—derived from the right of dominion or possession of an owner. This is the highest degree of possession.

Classes of Possession (GO BAHO)1. Possession in one’s own name—possessor claims the thing/right for himself. (524)2. Possession in name of another—possessor holds the thing/right owned by another. (524)

Note: Subject to ratification if not authorized by principal.This may be:a. Physical or material Possession: as when possessor is a mere custodian (i.e. possession of

money by a bank teller.b. Juridical: when possession gives the transferee a right over the thing which the transferee

may set-up against the owner. (i.e. possession of an agent who receives the proceeds of sales of goods delivered to him in agency by his principal)

Classes:a. Voluntary—agent possesses for the principalb. Necessary/legal—as when a mother possesses for a child still in the maternal womb or

incapacitated. Possession in behalf of juridical entities.c. Unauthorized (negotiorum gestio)—this will become the principal’s possession only after

there has been a ratification without prejudice to the effects of negotiorum gestio.

3. Possession in the concept of owner—possessor by his actions is considered or is believed by other people as the owner regardless of good faith or bad faith.(525)

Note: Possessor may be the owner himself or an adverse possessor.Effects: a. May be converted into ownership through acquisitive prescription

b. An action may be brought to protect possession c. May ask for inscription of possession d. Demand fruits and damages from one unlawfully detaining property

4. Possession in the concept of holder—possessor acknowledges that there is a superior right over the thing by another person, which is ownership. (525)

Examples: Usufructuary, Lessee, bailee in commodatum.5. Possession in good faith.(526)

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Requisites: a. Possessor has a title or mode of acquisition (712) b. There is a flaw or defect in said title or mode c. Possessor is unaware or aware of the flaw or defect or believes that the thing

belongs or does not belong to him.

6. Possession in bad faith. (526)- possessor is aware of defect or flaw in his title.

Instances of Bad Faith1. “Where the possessor has always believed that the land in question did not belong to him.”- (Javier v. Javier 1906)2. “Where the wife was present when her husband entered into the lease contract and was not ignorant of the defect in her husband’s alleged prescriptive title when she pretended to take possession thereunder.” – (Lerma v. Dela Cruz 1907)3. “Where the petitioner acquired his interest in the land aware that a litigation concerning the land was still pending.”—(Rivera v. Moran 1926)4. “Where a purchaser believed that the seller was the owner of the land sold, which land was owned by another as evidenced by the latter’s Torren’s title thereto, in view of the presumptive knowledge of the Torren’s title.” (J.M. Tuason & Co. Inc. vs. Mumar 1968)5. “Where the lessee continues to occupy the premises after the period of the lease contract has already expired as he becomes a usurper with no right to legitimately continue in the use and enjoyment thereof.” (Republic v. Diaz 1979)6. “Where the land sold is in the possession of another other than the vendor, the purchaser must go beyond the certificate of title and make inquiries, failing in this purchaser cannot invoke good faith.” (Heirs of Roxas v. CA 2004)7. “Where the purchaser of land has notice that it is subject to right of repurchase from his vendor (vendee a retro in a previous sale) although such right has already lapsed but the title has not yet been cleared of the encumbrance.” (Conde v. CA 1982)8. “Where one purchased a land, on the certificate of title of which an adverse claim was previously annotated.” (Gardner v. CA 1984)

Extent of Possession1. Actual- occupancy in fact of the whole or at least substantially whole.2. Constructive- occupancy of part in the name of the whole under such circumstances that the law extends the occupancy to the possession of the whole.

Doctrine of Constructive PossessionGeneral Rule: “Possession and cultivation of a portion of a tract of land under claim of ownership is constructive possession. When for example a person took possession of land by planting trees and constructed building, it was immaterial that the building was unfinished and that he left the place and visited the property intermittently. It is sufficient that the property was able to be subjected to his will.” (Somodio v. CA- 1994)

Exceptions/Qualifications: 1. “Mere planting of a sign or symbol of possession cannot justify a Magellan-like claim of dominion over an immense tract of territory” – (Lasam v. Director of Lands-1938)2. “Mere cultivation does not constitute possession under a claim of ownership.”—(Republic vs. CA 1988)3. “Mere fact of declaring uncultivated land for taxation purposes and visiting it every once in a while has been held not to constitute acts of possession.”—(Ramirez vs. Director of Lands 1934)4. “Doctrine of constructive possession does not apply where the possession is wrongful or the part allegedly constructively possessed is in adverse possession of another”—(Sarmiento v. Lesaca 1960)

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Presumptions in favor of the possessor1. Of Good Faith (527)2. Of continuity of initial good faith [528]3. Of enjoyment in the same character in which possession was acquired until the contrary is proved [529]4. Uninterrupted possession of hereditary property (533.1)5. Possession with just title [561]6. Possession of movables with real property [542]7. Exclusive possession of common property [543]8. Continuous possession [554]9. Uninterrupted possession [561]10. Possession during intervening period [1138.2]

OBJECT OF POSSESSION [530] (RPDN)

1. Res Communes (privately owned property) {Res Nullius: No Owner}2. Property of public dominion3. Discontinuous servitudes4. Non-apparent servitudes

Acquisition of Possession (MWA) [531]

1. By the material occupation of exercise of a right (Traditio brevi manu and traditio constitutum possessorium)2. By the subjection of the thing or right to our will (tradition longa manu and tradition symbolica)3. By proper acts and legal formalities established for acquiring such right of possession.

By whom possession is acquired (532)1. Personally or by the same person who is to enjoy it.2. Thru an authorized person or by his legal representative or agent3. Thru an unauthorized person or by any person without any power or authority whatever

Possession through succession 1. Possession of hereditary property is deemed transmitted w/o interruption from moment of death (if accepted) and if not accepted is deemed never to have possessed the same. [533]2. One who succeeds by hereditary title shall not tack the bad faith of the predecessors-in-interest except when he is aware of flaws affecting title; but effects of possession in good faith shall not benefit him except from the date of death of decedent. [534]

Time of acquisition:

a. Heir accepts: from the moment of death since there is no interruption.b. Heir refuses or incapacitated to inherit: he is deemed never to have possessed the same

Acquisition by Minors/Incapacitated Persons [535]May acquire material possession but not right to possession. Such right to possession may only be acquired through their legal representatives.

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Resort to Courts necessary to acquire possession when there is a possessor objecting thereto. The application of force or intimidation therefore could not result to acquisition of possession. [536]

Acts that do not give rise to presumption of abandonment of right of possession [537]1. Acts merely tolerated2. Clandestine or unknown acts3. Acts of violence

Conflicts between several claimants [538]

General Rule: Possession cannot be recognized in two different personalities except in case of co-possession when there is no conflict

Preference of Possession1. Present of actual possessor shall2. If there are two possessors, longer in possession3. If dates of possession are the same, possessor with a title (i.e right or document evidencing his right to support his possession)4. If all the above are equal, the fact of possession shall be judicially determined and in the meantime, the thing shall be placed in judicial deposit.

EFFECTS OF POSSESSION

Rights of Possession

1. Right to be respected in his possession and should he be disturbed he shall be protected in or restored to said possession. [539]

2. Right to secure the proper writ to restore him in his possession from a competent court in an action for forcible entry. [539]

3. Possession acquired and enjoyed in the concept of an owner can serve as title for acquisitive prescription, even if acted in BF [540]

4. Possession in concept of owner has in his favor the legal presumption of just title. [541]* Just Title- may be written or oral proof. Title sufficient to transfer ownership without need of

possessing the property for the period necessary for acquiring title by prescription. It is title that it true and valid.

* Colorable Title- one which a person has when he buys a thing in good faith, from one who is not the owner but whom he believes to be the owner. This is the required title for acquisitive prescription (De Jesus v. CA-1993)

* Putative Title- one which a person believes he has but in fact he has not because there was no mode of acquiring ownership, as when one is in possession of a thing in the mistaken belief that it had been bequeathed to him.5. Possession of real property presumes that movables are included. [542]6. Co-possessors deemed to have exclusively possessed part which may be allotted to him;

interruption in whole or in part shall be to the prejudice of all. [543]7. Possessor in good faith entitled to fruits received before possession is legally interrupted.

(Natural and industrial: received from the time gathered/severed; Civil Fruits accrue daily). [544]

8. Right to a part of expenses of cultivation and net harvest in proportion to time of possession if there would be any natural or industrial fruits at the time good faith ceases. (Owner has the option to allow the possessor to finish the cultivation and gathering of the growing fruits which

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shall be considered indemnity for his part of expenses and net proceeds; if he refuses this concession he loses the right to be indemnified.) [545]

9. Possessor in GF has the right to be reimbursed for necessary expenses whether in GF or in BF. Only Possessor in GF has the right of retention. [546.1]

10. Possessor in GF has the right to be reimbursed for useful expenses with right of retention (Owner has the option to pay expenses or the increase in value of the property by reason of the useful expenses) [546.2]

11. Possessor in GF may remove improvements if can be done w/o damage to principal thing unless owner exercises option of paying expenses/increase in value. [547]

* Vendor a retro, a homesteader exercising his right of repurchase was ordered to refund the value of a house constructed on subject land by a vendee a retro.—SC ruled that requiring the vendor a retro to return the value of house constructed was illegal. It being clear that vendor a retro is not exercising the option to refund the useful expenses, then the vendee a retro may remove the house since this can be done without damage to the principal thing. Incidentally, no right of retention is granted to the vendee a retro. (Calagan v. CFI Davao-1980)

12. Possessor in GF and BF may not be entitled to payment for luxurious expenses but may remove them provided principal is not injured and provided owner does not choose to refund the amount expended. [548]

13. Improvements caused by nature or time shall inure to the benefit of person who has succeeded in recovering possession. [551]

14. Right to possession wild animals while under one’s control. [560]Wild Animals: whether terrestrial or aquatic, living in a state of nature independently of and

without the aid and care of manDomesticated or Tamed Animals: animals which are wild or savage by nature but have been

subdued and made use of by man and become accustomed to live in a tamed condition15. One who recovers according to law, possession unjustly lost is deemed to have enjoyed it

without interruption. [561]

Liabilities/Duties of Possessor

1. Possessor in BF must reimburse the value of fruits which the legitimate possessor could have received [549 in relation to 443]

*Luxurious expenses shall not be refunded to Possessor in BF but may remove improvements without injury and provided lawful possessor does not prefer to retain them by paying their value. [549]2. Bear cost of litigation [550]3. Possessor in GF not liable for loss or deterioration except when fraud and negligence

intervened. [552.1]4. Possessor in BF liable for loss or deterioration even if caused by fortuitous event. [552.2]

*Person who recovers possession not obliged to pay for improvements which have ceased to exist at the time of occupation. [553]

LOSS OF POSSESSION [555] {AA PEA DC}

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By will of the Possessor1. A bandonment of the thing2. A ssignment to another by onerous or gratuitous title

Against the Will of the Possessor3. P ossession of another if new possession lasted longer than one year(possession as a fact);

real right not lost until after 10 years.4. E minent Domain5. A cquisitive Prescription

By Reason of the Object6. D estruction or total loss of the thing7. Thing went out of commerce

POSSESSION WHEN NOT LOST1. When remained with possessor’s control eventhough for the time being he may not know their

whereabouts.[556]2. With respect to third persons, which are not prejudiced except in accordance with Mortgage

Law and Land Registration Laws. [557]3. When agent encumbered property without express authority unless ratified [558]

Possession of movable equivalent to title [559]1. Acquired in GF2. Owner has voluntarily parted with the possession of a thing 3. Possession is in the concept of owner

Doctrine of Irrevindicability—Possession in GF of a movable is presumed ownership. It is equivalent to a title. No further proof is necessary.

When may possession may not be recovered if unlawfully deprived of1. Where the owner of the movable by his conduct precluded from denying the seller’s authority

to sell2. Where the law enables the apparent owner to dispose of the movable as if he were the true

owner thereof. (PD 1529; NIL; Warehouse Receipts Law)3. Where the sale is sanctioned by statutory or judicial authority4. Where the sale is made at merchant’s stores, fairs or markets (1505)5. Where the seller has a voidable title which has not been avoided at the time of the sale to the

buyer in GF for value and w/o notice of the seller’s defect of title (1506)6. Where recovery is no longer possible because of prescription (1132)7. Where the possessor becomes the owner of the thing in accordance with the principle of

finder’s keeper (719)

USUFRUCT-Right to enjoy the property of another with the obligation of preserving its form and substance, unless the title constituting it or the law otherwise provides. [562]

* “A Person cannot create a usufruct over his own property and at the same time retain ownership of the same. For usufruct is essentially jus in re aliena; and to be a usufructuary of one’s own property is, in law, a contradiction in terms and a conceptual absurdity.”- [Gaboya v. Cui -1971]

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CHARACTERISTICS/ELEMENTS

1. Essentiala. Real right of use and enjoyment (whether registered or not)b. Temporary Durationc. Its purpose is to enjoy the benefits and derive all advantages from the object as a

consequence of normal use or exploitationd. Transmissiblee. May be constituted on real or personal, consumable or nonconsumable. Tangible or

intangible property.

2. Natural- those which are ordinarily present but can be eliminated by a contrary stipulationa. The obligation of conserving or preserving the form and substance of the thing

3. Accidental- those which may be present or absent depending upon the stipulation of the partiesa. Whether it be pure or a conditional usufructb. The number of years it will existc. Whether it is in favor of one person or several

Classifications of Usufruct1. As to whether or not impairment of object is allowed [562]

a. normalb. abnormal

2. As to origin [563]a. Legal- created by law such as usufruct of the parents over the property of their

unemancipated minorb. Voluntary or conventional- created by will of the parties either by donation inter vivos or

donation mortis causac. Mixed- acquired by prescription such as when believing himself the owner of the property of

an absentee, gave in his will the usufruct of the property for the requisite prescriptive period to his wife and naked ownership to his brother and wife possessed it in GF as usufructuary.

3. As to number of persons enjoying the right [611]a. simpleb. multiple

1. simultaneous- at the same time2. successive- one after the other

*In case of multiple usufructuaries, in usufruct created by donation, all the donees must be alive or at least already conceived at the time of the perfection of the donation.

4. As to quantity or extent of object [564]i. Totalii. Partial

5. As to extent of owner’s patrimony [598/599]a. Universal—if over the entire patrimonyb. Particular/Singular—if only individual things are included

6. As to quality of kind of objecta. of things

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i. Normal(or perfect or regular)—this involves non-consumable things where the form and substance are preserved

ii. Abnormal(or imperfect or irregular)—involves consumable thingsb. of rights—rights must not be personal or intransmissible in character. (so present and future

support cannot be an object of usufruct)

7. As to terms or conditionsa. Pure—No term or conditionb. With a term or period

i. ex die—from a certain dayii. in diem—up to a certain dayiii. ex die in diem—from a certain day up to a certain day

c. With a conditioni. Resolutoryii. Suspensive

DISTINGUISHED FROM LEASEUsufruct Lease

Extent Covers all fruits and uses as a rule

Generally covers only a particular or specific use

Nature Is always a real right Is a real right only if registered, as in the case of lease of real property OR if contracted for more than one year

Creator Can be created only by the owner, or by a duly authorized agent, acting in behalf of the owner

The lessor may or may not be the owner as when there is a sublease or when the lessor is only a usufructuary

Origin May be created by law, contract, last will or prescription

May be created as a rule only by a contract; and by way of exception by law (as in the case of an implied new lease, or when a builder has built in GF on the land of another a building, when the land is considerably worth more in value than the building

Cause The owner is more or less passive and he allows the usufructuary to enjoy the thing given in usufruct

The owner or lessor is more or less active and he makes the lessee enjoy

Repairs The usufructuary has the duty to make ordinary repairs

The lessee generally has no duty to pay repairs

Taxes The usufructuary pays for the annual charges and taxes on the fruits

The lessee generally pays no taxes

As to other things A usufructuary may lease the thing to another

The lessee cannot constitute a usufruct on the property leased

DISTINGUISHED FROM EASEMENTSUSUFRUCT EASEMENT

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Object May be real or personal property

Involves only real property

Extent What can be enjoyed here are all uses and fruits of the property

Limited to particular use

Coverage Cannot be constituted on an easement; but it may be constituted on the land burdened by an easement

May be constituted on a piece of land held in usufruct

Effect of Death Usually extinguished by death of usufructuary

Not extinguished by the death of the dominant estate

RIGHTS OF THE USUFRUCTUARY

I. AS TO THINGS AND ITS FRUITS1. Right to fruits

a. Civil Fruits Accrue Daily [569]i. Belong to the usufructuary in proportion to the time the usufruct may lastii. Both stock and cash dividends are considered civil fruits

b. Industrial and Natural Fruitsi. Fruits pending at the beginning of usufruct [567]

belong to the usufructuary no necessity of refunding the owner for expenses incurred, but w/o prejudice to the rights of 3rd persons (thus if the fruits had been planted by a possessor in GF, the pending crop expenses and charges shall be pro-rated b/w said possessor and the usufructuary

ii. Fruits pending at the termination of usufruct [567] belong to the owner BUT the owner must reimburse the usufructuary for ordinary cultivation

expenses and for seeds and similar expenses, from the proceeds of the fruits. (Hence the excess of expenses over the proceeds need not be reimbursed)

2. Right to Hidden Treasure as stranger [566]3. Right to enjoy any increase which the thing in usufruct may acquire through accession [571]4. Right to personally enjoy the thing in usufruct or lease it to another [572-577]

Right to make use for the purpose intended of things which gradually deteriorate and shall not be responsible for deterioration due to wear and tear and is only obliged to return the thing in that condition but shall pay indemnity if deterioration was caused by his fraud or negligence [573] In case of usufruct on consumables, the usufructuary should pay the appraised value at the termination of usufruct if the thing/s were appraised when delivered. If there is no appraisal, return the same quantity and quality or pay the current price. [574] Right to make use of the dead trunks (of fruit-bearing trees and shrubs) and those cut-off or uprooted by accident with obligation to replace them [575] Right to leave the dead, fallen or uprooted trunks if trees or shrubs disappeared through calamity or extraordinary event and demand their removal from the owner. [576] Right to benefits produced naturally in usufruct of woodland. [577] He shall have the right to ordinary cutting or felling habitually made by the owner (or according to customs of the place) if the woodland is a copse or consists of timber for

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building. (All other cutting down of trees ofther than this should be for the purpose of restoring or improving things in usufruct and subject to consent of the owner) [577] Right to make necessary thinnings in nurseries [577]

5. Right to make on the property in usufruct such improvements or expenses he may deem proper and to remove the improvements provided no damage is caused to the property [579]6. Right to set-off the improvements he may have made on the property against any damage to the same [580]7. Right to retain the thing until he is reimbursed for advances for extraordinary expenses and taxes on capital [612]

II. As to Usufruct itself1. Right to alienate (or mortgage) the right of usufruct except parental usufruct [572]

* “After a usufrucruary has donated her usufructuary right over a certain property she cannot get it back on the ground that she did not own the properties” –[Seifert v. Bachrach 1947]

2. Right to bring action and oblige owner thereof to give him proper authority and necessary proof in a usufruct to recover property or a real right [578]

3. Right to exercise all the rights pertaining to the co-owner with respect to the administration and collection of fruits or interests from the property, in a usufruct of part of a common property. [582]

*”The usufructuary shall be bound by the partition made by the owners of the undivided property although he took no part in the partition but the naked owner to whom the part held in usufruct has been allotted must respect the usufruct. The right of the usufructuary is not affected by the division but it is limited to the fruits of said part allotted to the co-owner. (Pichay v. Querol 1908)

4. In usufruct of Matured Credits, usufructuary may claim matured credits, collect them and use and invest, w/ or w/o interest the capital he has collected, in any manner he may deem proper.

If he has not given security or it is insufficient or he has been excused to give one, he may collect the credits and invest the capital which must be at interest with the consent of the naked owner or approval of the court. [599]

5. In usufruct of mortgaged immovables, the usufructuary is not obliged to pay the debt for the security of the mortgage. He shall have a right to whatever he may lose by reason of the attachment of sale of the immovable for the payment of debt of the owner. [600]

III. As to advances and damages1. Right to be reimbursed for indispensable extraordinary repairs made by him in an amount equal to the increase in value which the property may have acquired by reason of such repairs. [594]2. Right to be reimbursed for taxes on the capital advanced by him [597.2]3. Right to be indemnified for damages caused to him by the naked owner who caused an alteration which diminished the value of the thing in usufruct [581]

IV. Other1. Right to make use of the land and materials, when building forming part of the usufruct on immovable has been destroyed in any manner [607] {Same rule if Usufruct is constituted on building only}

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2. If usufructuary shares in insurance of tenement in usufruct, and it was lost, he shall continue in enjoyment of the new one if one be constructed OR receive interest on the insurance indemnity. [608]

OBLIGATIONS OF THE USUFRUCTUARY

1. Pay expenses to 3rd persons for cultivation and production at beginning of the usufruct2. Pay damages in case of usufruct of movable subject to deterioration if such was due to fraud or negligence of usufructuary.3. Those before the usufruct begins [583]

a. Notice of inventory of property (appraisal and description of movables)b. Posting of security

i. Not applicable to parents who are usufructuary of children except when 2nd marriage was contracted and to donor who has reserved the usufruct of the property donated [584]

ii. Excused—allowed by owner; not required by law or no one will be injured [585]

Failure to Give Security: owner may demand that:1. immovable be placed under administration2. Net income may be converted into registered certificates or deposited in bank3. Capital & proceeds of sale of movables be invested in safe securities(Interest on

proceeds or property under administration belong to the usufructuary)4. Retain property as administrator but with obligation to deliver net proceeds(after deducting

expenses of administration agreed upon or judicially allowed) to usufructuary until he gives sufficient security.

** Court may grant petition not to deliver the furniture, implements or tools necessary for use of the usufructuary or industry as security and that he and his family be allowed to live in the house included in the usufruct, but he must take an oath. [587]

** Owner may refuse that articles with artistic or sentimental value be sold. These shall be delivered to him if he gives security to the usufructuary for the payment of legal interest on their

appraised value.[587]

** When the Security given, usufructuary has a right to proceeds and benefits to the day he is entitled to receive them(588)

THOSE DURING THE USUFRUCT4. Take care property with diligence of a good father of a family [589]5. Liability for negligence or fault of substitute [590]6. If usufruct is constituted on animals—duty bound to replace dead animals that die from natural causes or became prey;

if all of them perish w/o fault but due to contagious disease/uncommon event—deliver those that are saved;

if perish in part due to accident—continue on remaining portion

If usufruct was constituted on sterile animals—as if fungible, may be replaced of same kind and quality. [591]

7. Obliged to make ordinary repairs. (*Ordinary Repairs- required by wear and tear due to natural use of the thing and are indispensable for its preservation)

8. Notify the owner when the need for extraordinary repairs is urgent [593]

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9. Permit works and improvements by the naked owner not prejudicial to the usufruct [595]10. Payment of annual charges and taxes affecting fruits [596] 11. Pay debts when the usufruct is constituted on the whole of a patrimony [598]

* Previously contracted debts only unless there is a contrary stipulation* Not liable for debts in excess of the value of the assets received unless contrary is intended

12. Notify owner of any prejudicial act committed by 3rd persons [601]13. Pay court expenses and costs regarding usufruct [602]

THOSE AT THE TERMINATION OF THE USUFRUCT

14. Return the thing in usufruct to the naked owner unless there is a right of retention pertaining to him (usufructuary) or his heirs for extraordinary expenses or taxes it paid [612]15. Payment of the legal interest on the amount expended by owner for extraordinary repairs [594]16. Payment of proper interest on the taxes on capital paid by the owner [597]17. Indemnify the naked owner for any losses due to his negligence or of his transferees [589-590]

RIGHTS OF NAKED OWNER1. Alienate thing2. Construct any works and make any improvement or plantings (if rural) provided it does not diminish the value of usufruct or prejudice the right of usufructuary [595]3. Right to occupy the land and to make use of materials on Usufruct of a Building which was destroyed and a new building was constructed by owner [607.2]4. Demand the return of the thing if the abuse should cause considerable injury to him (owner), but shall pay annual net proceeds less expenses of administration [610]

OBLIGATIONS OF NAKED OWNER1. Extraordinary Expenses2. Expenses after renunciation of usufruct3. Taxes and expenses imposed directly on capital4. Liable for whatever may be lost by the usufructuary in usufruct of mortgaged immovables if these were sold.5. If expropriated for public use—owner may replace it or pay legal interest to usufructuary of net proceeds of the same. [609]6. Pay Usufructuary the interest on the value (this actually is the insurance received for the destroyed building) of the land occupied and materials used by naked owner after constructing a replacement building in Usufruct of a Building which was destroyed. [607.2]7. Pay annual net proceeds less expenses of administration if he demanded return of the thing after it was found out to be in bad use and causes injury to him [610]

Special Usufructs (POC-VM-PDC)1. Of pension or income (570)2. Of property owned in common (582)3. Of cattle/livestock (591)4. On vineyards and woodlands (575-576)5. On mortgaged Property (600)6. Over the entire patrimony (598)7. Over the things which gradually deteriorate (573)

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8. Of consumable property

EXTINGUISHMENT OF USUFRUCTUARY [603] [DEMET-TP]1. Death of Usufructuary—unless contrary intention appears2. Expiration of period of usufruct3. Merger of usufruct and ownership4. Express renunciation of usufructuary5. Total loss of thing6. Termination of the right of the person constituting the usufruct7. Prescription

*Thing Loss in Part, right on the remaining part continues [604]*Usufruct cannot be constituted in favor of town, corporation or association for more than 50 years[605]*Usufruct with duration dependent on the age of a person (expires when person attains a certain age) subsists even if such person die before the period expires unless usufruct is expressly granted only in consideration of the existence of such person [606]* Usufruct in favor of several persons not extinguished until death of last survivor [611]

EASEMENTS OR SERVITUDES

Easement- an encumbrance imposed upon an immovable for the benefit of another immovable belonging to a different owner. The immovable in favor of which the easement is established is called the dominant estate; that which is subject thereto, the servient estate.

Differences Between Servitude And Easement1. Servitude is the term used in Civil Law Countries like Spain, while easement is used in common-law countries like England2. Servitude is broader in scope. In common law, easement is just one form of servitude.3. Servitude in Civil Law refers to both real easement (predial) or to a personal easement. While in common law easement is always predial or real easement.

Characteristics of Easement or Servitude

1. Real right but will affect third persons only when registered.2. It is enjoyed over another immovable. (The immovable is understood in its common meaning such as lands, buildings, roads and constructions attached to the soil. It is not understood in its legal sense under Article 415 where even birds and fish may be considered immovable properties.)3. Involves two neighboring estates. (The other property must be owned by another owner.)4. It is inseparable from the estate to which it is attached and therefore cannot be alienated independently of the estate. [617]5. It is indivisible [618]6. Right is limited by the needs of the dominant owner or estate without possession7. It cannot consist in the doing of an act unless the act is accessory in relation to a real easement.8. It is a limitation on the servient’s owner’s rights of ownership for the benefit of the dominant owner and therefore it is not presumed.9. Its cause must be perpetual (as long as the dominant and/or the servient estate exists unless sooner extinguished by the causes enumerated by law)

CLASSIFICATION

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1. According to the Manner they are exercised. [615]a. Continuous—their use is incessant or may be incessant without the intervention of any act of

man.Examples: i. Easement of aqueduct ii. Easement of right to support a beam on another’s walliii. Easement of light and view

b. Discontinuous—used at intervals and depend upon the acts of man.Example: Easement of right of way

2. According to Presence of Signs Indicative of their existence [615]a. Apparent—those which are made known and continually kept in view by external signs

revealing their use and enjoyment by the owner of the dominant estate.Example: i. Window in a party wall which is visible to owners of the party wallii. Right of way if there is a permanent path constructed.iii. Easement of Dam

Exception: An easement of aqueduct is always considered apparent for legal purposes [646]

b. Non-Apparent—those which do not show signs of their use and enjoyment.Example:

i. Easement of lateral and subjacent supportii. Easement of intermediate distance [679]iii. Easement of right of way if there is no visible pathway or alley.iv. Easement of not building to more than a certain height

3. According to purpose of easement or the nature of limitation or obligation of servient owner [616]

a. Positive—one which imposes the duty on the owner of the servient estate to do something or to allow something to be done by the owner of the dominant estate. (SERVITUDES OF SUFFERANCE or INTRUSION)

Examples:i. If branches of a tree extend over a neighboring estate, the owner of the latter estate has

the right to demand from the owner of the tree the cutting of the overreaching branches [680].ii. If the roots of the tree would penetrate into the land of another, the owner of the tree

(servient estate) has the obligation to allow the cutting of the invading roots [680.2]iii. Easement of light and view in a party wall [668.1]iv. Easement of right of way

b. Negative—one which prohibits the owner of the servient estate from doing something which he could lawfully do if the easement did not exist. (Also called SERVITUDES OF ABSTENTION or LIMITATION or RESTRICTION

Examples:i. Easement of light created by the making of an opening in one’s own wall below the ceiling

joists.[669] The owner of the other tenement cannot construct anything which will obstruct the entry of light. Were it not for the easement, the owner of the servient estate can construct structures on his own tenement that could obstruct the light passing through the said opening. However, the dominant owner can object to the construction of any barring structures only after the lapse of ten

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years following the receipt by the servient owner of a notarial prohibition restraining him from making such blocking structures. [668]

ii. Easement not to build higher structure which will block the easement

4. According to party given the benefita. real (or predial)—for the benefit of another belonging to a different owner.

Example:i. Easement of water where lower estates are obliged to allow water naturally descending

from upper estates to flow into them. (Natural Drainage) [637]

b. personal—for the benefit of one or more persons or communityExample: i. Easement of right of way for passage of livestock [657]

5. According to right givena. Right to partially use the servient estate. Ex. Right of Wayb. Right to get specific materials or objects from the servient estate. Ex. Easement of Drawing

Waterc. Right to participate in ownership. Ex. Easement of Party Walld. Right to impede or prevent the neighboring estate from performing a specific act of

ownership. Ex. Easement of intermediate distances as when the servient estate cannot plant trees w/o observing certain distances.

6. According to source or origina. Voluntary—constituted by will or agreement of the parties or by a testator. b. Mixed—created partly by agreement and partly by lawc. Legal—constituted by law for public use or for private interest

MODES of ACQUIRING EASEMENTS

I. By Title1. discontinous and apparent2. continuous and non-apparent3. discontinous and non-apparent

II. By Title & Presciption(10 years irrespective of good faith or bad faith)1. continuous and apparent

**Computation of time of Possession for acquisition through prescription [621]Positive: From the day the dominant estate began to exercise the right (i.e. regarding a

window in a party wall, from the day the opening or window was built [668] )

Negative: From the time Notarial Prohibition was made on the servient estate.

III. By Deed of Recognition [623]IV. By Final Judgment [623]V. By Apparent sign established by the owner of two adjoining estates should either of the estates are alienated, unless at the time the ownership is divided the contrary is provided in the title of conveyance OR sign removed before execution of deed [624]VI. By Exproriation

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*Absence of a document or proof showing origin of an easement w/c cannot be acquired by prescription may be cured by a deed of recognition by the owner of the servient estate OR by a final judgment

RIGHTS OF THE DOMINANT ESTATE OWNER (EMRA)1. Exercise the easement and all necessary rights for its use including accessory easement [625]2. Make on the servient estate all works necessary for the use and preservation of the servitude, BUT

a. Must be at his own expenseb. Must notify the servient ownerc. Select convenient time and mannerd. Must not alter the easement nor render it more burdensome [627.1]

3. Renounce totally the easement if he desires exemption from contribution to expenses [628]4. Ask for mandatory injunction to prevent impairment of his use of the easement [Resolme v. Lazo]

OBLIGATIONS OF THE DOMINANT ESTATE OWNER [ANCC]1. Cannot alter the easement or render it more burdensome [627.1]2. Notify the servient owner of works necessary for the use and preservation of the servitude [627.2]3. Choose the most convenient time and manner in making the necessary works as to cause the least inconvenience to the servient owner [627.2]4. Contribute to the necessary expenses if there are several dominant estates in proportion to the benefits derived from the works [628.1]

RIGHTS OF THE SERVIENT ESTATE OWNER [RUC]1. Retain ownership and possession of the portion of the estate on which the easement is established [630], even if indemnity for the right is given (as in the case of easement of right of way) [649], unless the contrary has been stipulated.2. Use the easement unless deprived by stipulation provided that the exercise of the easement is not adversely affected [630] and provided further that he contributes to the expenses in proportion to benefits receives, unless there’s an agreement to the contrary [628.2]3. Change the place or manner of the use of the easement, provided that an equally convenient substitute is made, w/o injury to the dominant estate. [629.2]

OBLIGATIONS OF THE SERVIENT ESTATE OWNER (PRIC)1. Pay for expenses incurred for the change of location or form of the easement [629.2]2. In case of impairment, restore conditions to status quo at his expense plus damages. (Paras, citing Sanchez Roman)

(In case of obstruction, as when the servient owner fences the original right of way, and offers an inconvenient substitute, which is farther and requires turning at a sharp angle, he may be restrained by injunction—Resolme v. Lazo)3. Cannot impair the use of the easement [629.1]4. Contribute to the expenses in case he uses the easement, unless there is a contrary stipulation. [628.2]

MODES OF EXTINGUISHMENT OF EASEMENTS [631] (MN BERR)1. MERGER in the same person of the ownership of the dominant and servient estates.

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*Merger must be absolute, complete, not temporary.2. NON-USER for 10 Years.

How computed? 1. Discontinuous: from the day on which they ceased to be used2. Continuous: from the day on which an act contrary to the same took place

*Use by at least one co-owner of the dominant estate of the easement prevents prescription as to the others inasmuch as an easement is indivisible. [633]3. BAD CONDITION of either or both of the tenement, in such a case that it cannot be used. (But shall revive if the subsequent condition again permit its use unless prescription takes place.4. EXPIRATION of the term of the fulfilment of the condition, if easement is temporary or conditional.5. RENUNCIATION of the owner of the dominant estate6. REDEMPTION agreed upon between the owners of the dominant and servient estates.

LEGAL EASEMENTS- are those imposed by law having their object either public use or the interest of private persons. They shall be governed by the special laws and regulations relating thereto, and in the absence thereof, by the Civil Code.

KINDS: (WRPL DIAL)1. Easement Relating to Waters2. Easement of Right of Way3. Easement of Party Wall4. Easement of Light and View5. Drainage of Building6. Intermediate Distances and Works for Certain Constructions and Plantings7. Easement Against Nuisance8. Lateral and Subjacent Support

EASEMENTS RELATING TO WATERS [DD R DD AC]1. Natural Drainage of Lands [637]2. Natural Drainage of Buildings [674]3. Easement on riparian banks for navigation, floatage, fishing, salvage and towpath [638]4. Easement of a dam [639, 647]5. Easement for drawing water or for watering animals [640-641]6. Easement of aqueduct [643-646]7. Easement for the construction of a stop lock or sluice gate [647]

Natural Drainage of Lands*Servient Estate owner cannot construct works that would divert the flow of water or burden

another tenement, nor enclosed his land by ditches or fences which would impede the flow*Dominant Estate owner cannot collect water, nor increase the velocity of the descent by maing

the ground more impervious or less absorbent, but he may construct works preventing erosion [Law on Waters].

*If the descending waters are the result of artificial development or proceed from industrial establishments recently set up or are the overflow from irrigation dams, the owner of the lower estate shall be entitled to compensation for his loss or damage. (Law on Waters)

Drainage of Buildings*Owner of Building must construct its roof in such manner that the rain water falls on his own

land or on a street or public place.

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*Owner is obliged to collect the water without causing damage to the adjacent land or tenement. [674]

*If Tenement or Land is subject to easement of receiving water falling from roofs—owner of such tenement may build in such manner as to receive the water upon his own roof or give it another outlet [675].. This is applicable in places where buildings are constructed in mountainous or elevated areas and roofings are of different heights. Those in the lower areas may be receiving in their roofs rain water coming or falling from neighboring roofs. Servient owner should provide an outet for the passage of falling water to public street.

*Outlet of Rain Water through surrounding houses—like compulsory easement of right of way.Conditions: (a) No adequate outlet for rain water

(b) Outlet must be at the point of easiest egress(c) least possible damage(d) payment of proper indemnity [676]

Easements along Riparian Banks*This whether the bank be private or public and whether the river be navigable or not. [638]*Entire Length and Width of Zone Burdened of 3 meters along the river margins

Easements of TOW PATH*Towpath: road or track that runs alongside the banks of a river, canal or other inland waterway,

the purpose of which is to allow a land vehicle, animal or a team of human pullers to tow a boat, often a barge.

*Banks must be navigable or floatable rivers. [638]*Width Zone: (a) 2 meters—animals (b) 1 meter—pedestrians

Easement of a Dam*Purpose: To divert or take water from a river or brook or for the use of any other continuous or

discontinous stream.*Person who is to construct and not the owner of the supporting lands or banks must pay

indemnity. [639]

Construction of stop lock or sluice gate [647]*Requisites: (a) Purpose must be for irrigation or improvement

(b) Construction must be on the estate of another(c) Damages must be paid(d) Third persons should not be prejudiced

Easement for drawing water or for watering animals*Only for reasons of public use in favor of a town or village after indemnity. [640]*Servient estates owners has obligation to allow passage to persons and animals to place

where easements are to be used, also with indemnity [641] Right of way have a maximum width of 10 meters, which cannot be altered by owners of the servient estates. However, the direction of the path may be changed, provided use of easement is not prejudiced.

Easement of Aqueduct* Requisites: Dominant estate owner must [643] {PSI}

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1. Prove that he can dispose of the water and that it is sufficient for the use for which it is intended.

2. Show that the proposed right of way is the most convenient and the least onerous to 3 rd

persons3. Indemnify the owner of the servient estate

* Cannot be imposed on buildings, courtyards, annexes or outhouses or orchards or gardens already existing.(for private interests) [644]

* Possible Ways: (a) Construction of an open or covered canal (b) construction of tubes or pipes* Servient owner may still enclose or fence the servient estate or even build over the aqueduct

so long as no damage is caused or repairs and cleanings become impossible. [645]

EASEMENT OF RIGHT OF WAY-easement or privilege by which one person or a particular class of persons is allowed to pass over another’s land, usually through one particular path or line.

Requisites: [650] (OANILI)1. Claimant must be owner of enclosed immovable or one with real right.2. There must be no adequate outlet to a public highway.3. The right of way must be absolutely necessary.4. The isolation must not be due to the claimant’s own act.5. The easement must be established at the point least prejudicial to the servient estate.6. There must be payment of proper indemnity.

*Basis of Indemnity: [649]a. Permanent Passage: Value of Land occupied + Amount of Damage to Servient Estateb. Necessary Passage (i.e. cultivation of estate): Amount of Damage

* Width is dependent on the sufficient needs of the dominant estate [651] * If the land conveyed by the grantor (i.e. vendor, co-owner, exchanger) is surrounded by his (grantor’s) other estates he shall be obliged to grant right of way w/o indemnity to him.. In case of simple donation, donor is indemnified if a right of way is established [652]* If it is the land of the grantor that was isolated he may demand a right of way after paying indemnity.. The donor however is not required to pay indemnity. [653]* If right of way is permanent—necessary repairs are made by the dominant estate owner.. He shall pay a proportionate share of taxes to servient estate (According to Paras “Proportionate” means the WHOLE tax for the whole estate) [654]

* EXTINGUISHMENT OF EASEMENT OF RIGHT OF WAY(Legal/Compulsory Right of Way) [655] –Not automatic as the law says servient owner “may demand”

1. Opening of a new road2. Joining the dominant estate to another(that is the latter becomes also the property of the

dominant owner) which abuts and therefore has access to the public highway. {The new access must be adequate and convenient}

*Temporary Easement of Right of Way: As when it is indispensable for the construction, repair, improvement, alteration or beautification of a building to carry materials to estate of another. [656]

*Easement of Right of Way for the Passage of Livestock: [657]Width (Maximum): a. Animal Path—75 meters

b. Animal Trail—37.5 metersc. Passageway for animals under 640/641 for watering—10 meters

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EASEMENT OF PARTY WALL-refers to all those mass of rights and obligations emanating from the existence and common

enjoyment of wall, fence, enclosures or hedges by the owners of adjacent buildings and estates separated by such objects.

PARTY WALL—a common wall which separates two estates built by common agreement at the dividing line such that it occupies a portion of both estates on equal parts. It is a forced co-ownership.

PARTY WALL vs. CO-OWNERSHIPPARTY WALL CO-OWNERSHIP

Shares of parties cannot be physically segregated but they can be physically identified

Shares of the co-owners can be divided and separated physically but before such division, a co-owner cannot pinpoint to any definite portion of the property as belonging to him

No limitation as to use of the party wall for exclusive benefit of a party

None of the co-owners may use the community property for his exclusive benefit

Owner may free himself from contributing to the cost of repairs and construction of a party wall by renouncing all his rights thereto

Partial renunciation is allowed

PRESUMPTION THAT A WALL IS A PARTY WALL [659]1. Dividing walls of adjoining buildings up to the point of common elevation2. Dividing walls of gardens or yards situated in cities, towns or in rural communities3. Fences, walls and live hedges dividing rural lands

How Presumption rebutted?a. Title to the contraryb. Exterior signs to the contraryc. Proof to the contrary

*Title prevails over a mere exterior sign.

EXTERIOR SIGNS NEGATIVING EXISTENCE OF PARTY WALL [660] (WOBB CSI)

(1) Whenever in the dividing wall of buildings there is a window or opening(2) Whenever the dividing wall is, on one side, straight and plumb on all its facement, and on the other, it has similar conditions on the upper part, but the lower part slants or projects outward; (3) Whenever the entire wall is built within the boundaries of one of the estates; (4) Whenever the dividing wall bears the burden of the binding beams, floors and roof frame of one of the buildings, but not those of the others; (5) Whenever the dividing wall between courtyards, gardens, and tenements is constructed in such a way that the coping sheds the water upon only one of the estates;

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*Coping: highest or covering course of a wall often of tile and usually with a sloping top to carry off water and commonly cut with a drip(6) Whenever the dividing wall, being built of masonry, has stepping stones, which at certain intervals project from the surface on one side only, but not on the other; (7) Whenever lands inclosed by fences or live hedges adjoin others which are not inclosed.

* Presumption of party wall applies to ditches and drains opened between two estates. But there is a rebuttable presumption: if a deposit of dirt is on one side alone, owner of that side is considered owner of the ditch. [661]* Proportionate contribution to repairs and construction similar to co-ownership, unless there is total renunciation of the share of one owner, the latter is exempt [662]* When owner of the building supported by a party wall desires to demolish the building he may also renounce his part-ownership of the wall. He however bears the cost of repairs necessary to prevent damage which the demolition may cause. [663]

* Requisites for Increasing the Height of the Party Wall [664] [DP BP RG]1. Must do so at his own expense2. Must pay the necessary damages caused even if damage is temporary3. Must bear the costs of maintenance of the portion added4. Must pay for the increased cost of preservation5. Must reconstruct if original wall cannot bear the increased height6. Must give the necessary additional space of his land if wall is to be thickened

*One desiring the increase height or depth shall be the exclusive owner of the additions, unless the other owners(who have not contributed in increasing height or depth) pay proportionally the value of the work at the time of the acquisition by other persons outside the original part-ownership and of the land used for its thickness. [665]* Use by the co-owners of the wall is in proportion to their right in the co-ownership. [666]

EASEMENT OF LIGHT AND VIEW

* Consent of part-owners of a party wall necessary in opening a window [667]

Easement of Light- right to admit light from the neighboring estate by virtue of the opening of a window or the making of certain openings.

Easement of View-right to make openings or windows to enjoy the view through the estate of another and the power to prevent all constructions or works which would obstruct such view or make the same difficult.

*Period of Prescription how counted? [668]a. From the time the opening of the window if it is through a party wallb. From the time of the formal prohibition upon the proprietor of the adjoining land or tenement,

if the window is through a wall on the dominant estate.

* When distances under Art. 670 not observed, owner of a wall w/c is not a party wall adjoining a tenement or a piece of land belonging to another may make in it openings to admit LIGHT: [669]

i. Maximum size—30cm. square

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ii. There must be an iron grating imbedded in the walliii. There must be a wire screen--This is referred to as RESTRICTED WINDOWS

*Rules for REGULAR WINDOWS (670)Direct View: At least 2 meters distance between the wall having the windows and the boundary

line.--This is measured from the outer line of the wall when the openings do not project OR from

the outer line of the openings when they project [671]Side/Oblique View: At least 60 centimeters between the boundary line and nearest edge of the

window (Santos v. Rufino)--This is measured from the dividing line between the two properties.

Direct View—gaining of direct sigt from an opening in a wall parallel to the boundary line w/o having to extend out or turn one’s head to see the adjoining tenement.

Side/oblique view—gaining of sight of the other tenement from an opening made at an angle with the boundary line, such that to be able to see the adjoining tenement there is a necessity for putting out or turning one’s head either to the left or to the right.

* Distances in Art. 670 applicable to buildings separated by a public way or a public alley which is not less than 3 meters wide. [672]* When a right has been acquired to have direct views, the owner of the servient estate cannot build thereon at less than a distance of 3 meters. Any stipulation permitting distances less than the prescribed under Art. 670 is void. [673]

INTERMEDIATE DISTANCES AND WORKS FOR CERTAIN CONSTRUCTIONS AND PLANTINGS

*No constructions and plantings near fortified places or fortresses [677]--Fortified Places/fortresses—military structure for the defense of the State against foreign

aggression.

*Construction of Aqueduct, Wells, sewers, furnace, forge, chimney, stable, depository of corrosive substances, machinery or factory w/c are dangerous or noxious not should observe the distances prescribed regulations and customs of the place. No waiver or alteration by stipulation is allowed for reasons of public safety. [678]

* Planting of trees subject to distances provided by ordinances or customs if there be none. If both not present: [679]

a. Tall trees—2 meters(minimum) from boundary line to center of the treeb. Small trees or shrubs—50 cm.(minimum) from boundary line to center of tree or shrub

--This is applicable even if trees have grown spontaneously.

* Fruits naturally falling upon adjacent land belong to the owner of said land [681]

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EASEMENT AGAINST NUISANCE--Forms of Nuisance [682][N-JOSH-DWG]1. n oise2. j arring3. o ffensive odor4. s moke5. h eat6. d ust7. w ater8. g lare

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LATERAL AND SUBJACENT SUPPORT

Lateral Support--support when the supported and supporting lands are divided by a vertical plane, which if diminished through diggings or excavations may cause crumbling or sliding of the neighboring land.

Subjacent Support—support when the supported land is above and the supporting land is beneath it, which if diminished through diggings or excavations may cause sinking of the neighboring land.

* Any stipulaton or testamentary provision allowing excavations that cause danger to an adjacent land or building shall be void [685]* Applicability is not only for standing buildings but also for future ones to be erected. [686]

VOLUNTARY EASEMENTS

* Consent of the usufructuary is not necessary if the Naked Owner imposes any servitude on the land or tenement as long as it does not injure the usufructuary. [689]* Both the naked and beneficial owner’s consent is necessary if a perpetual voluntary easement is to be established [690]* Consent of all co-owners necessary in order to impose an easement over the undivided tenement or land. Consent need not be given simultaneously. But once a co-owner gave his consent he cannot revoke it. [691]* Governing Rules for Voluntary Easements: [692]

a. If created by title, title governs and Civil code is suppletoryb. If created by prescription, form and manner in which it had been acquired governs, Civil

code is suppletory.* When servient estate owner bound himself to pay the cost of maintenance work, he may free himself if he renounces his property to the dominant estate owner [693]

NUISANCE [694]-- Any act, omission, establishment, business, condition of property or anything else which [IASOH]

1. I njures or endangers the health or safety of others (Ex. Factory causing pollution or house in danger of falling)

2. A nnoys or offends the senses (Ex. Garbage cans, too much blowing of horns)3. S hocks, defies, or disregards decency or morality (Ex. House of prostitution)4. O bstructs or interferes with the free passage of any public highway or street or any

body of water (Ex. Market Stalls constructed on streets)5. H inders or impairs the use of property (Ex. Illegal construction on another’s land)

Negligence vs. NuisanceNegligence Nuisance

Basis Liability is based on lack of proper care or diligence

Liability attached regardless of the degree of care or skill exercised to avoid injury

Condition of the act Act complained of is already done which caused injury to the plaintiff

There is continuing harm being suffered by the aggrieved party by the maintenance of the act or thing which constitutes the nuisance

Abatement Abatement is not available as a remedy. The action is for damages.

Abatement w/o judicial proceedings is allowed to suppress the nuisance

Nuisance vs. Trespass--In trespass there is entry into another’s property, this is not necessarily so in nuisance. --In trespass the injury is direct and immediate; in nuisance it is only consequential.

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CLASSIFICATION OF NUISANCE1. Old Classification

a. nuisance per se—always a nuisance (Ex. House of prostitution)b. nuisance per accidens—a nuisance only because of the location or other circumstances.

(Ex. A noisy factory in a residential district)

2. New ClassificationA. According to relief (whether given or not)

i. actionableii. non-actionable

B. According to manner of reliefi. those abatable by criminal and civil actionsii. those abatable only by civil actionsiii. those abatable judiciallyiv. those abatable extra-judicially

C. According to the Civil Codei. PUBLIC—affets a community or neighborhood or any considerable number of persons

although the extent of annoyance, danger or damage be unequal. [695]ii. PRIVATE—that which is not public or only affects certain individuals or affects private

rights [695]*There may be a MIXED NUISANCE or which affects both public and private. As when

it affects the community but there is a special injury to a private person. Example: A house abutting on a street railway track is a private nuisance to the railway company and a public nuisance because it obstructs the street.

DOCTRINE OF ATTRACTIVE NUISANCE“One who maintains on his estate or premises an attractive nuisance (which is a dangerous

instrumentality or appliance which is likely to attract children), without exercising due care to prevent children from playing therewith or resorting thereto is liable to a child of tender years who is injured thereby, even if the child is technically a trespasser in the premises.”

--The principal reason for the doctrine is that the condition or appliance in question although its danger is apparent to those of age, is so enticing or alluring to children of tender years as to induce them to approach, get on or use it, and this attractiveness is an implied invitation to such children.

--Generally not applicable to bodies of water, artificial as well as natural in the absence of some unusual condition or artificial feature other than the mere water and its location. Thus a swimming pool or reservoir of water is considered an attractive nuisance.

* Successor of a property constitution nuisance is liable if he did not remove it—[696]* Abatement for nuisance does not preclude recovery of damages for its past existence—[697]* Lapse of time cannot legalize any nuisance except, Non-user for ten years of an easement, ex. An easement of a dam which was considered a nuisance was not used for 10 years [698]

Remedies against Public Nuisance1. Criminal Prosecution2. Civil Action3. Abatement w/o judicial proceedings

*All remedies may be simultaneously pursued

* Civil action is commenced by the Mayor [701]* District health officer determines w/n extra-judicial abatement is the best remedy [702]* A private person may file an action against a public nuisance if it is specially injurious to him [703]

Conditions for extra-judicial abatement of a public nuisance by a private person1. Demand to owner or possessor of property2. Demand was rejected3. Abatement is approved by district health officer and executed w/ local police assistance4. Value of destruction does not exceed P3,000

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Remedies against a private nuisance1. Civil Action2. Abatement w/o judicial proceedings

* A private person injured by a private nuisance may abate it by removing/destroying w/o committing breach of peace. Procedure for extra-judicial abatement of a public nuisance by a private person is indispensable. [706]

* A private person extra-judicially abating a nuisance is liable for damages if:a. he causes unnecessary injuryb. an alleged nuisance is later declared by courts not a real nuisance [707]

REGISTRY OF PROPERTY--has for its object the inscription or annotation of acts and contracts relating to the ownership and other rights over immovable property. [708]

Registration—any entry made in a book or public registry of deeds. i.e. cancellation, annotation, marginal notes.

“Register”This may refer to:i. the act of recording or annotatingii. the book of registryiii. the office concernediv. the official concerned

Three systems of registration in the Philippines1. Registration under the Land Registration Act (Torrens System)2. Registration under the Spanish Mortgage Law3. Registration under Sec. 194 of the Revised Administrative Code, as amended by Act 3344

Purposes of Registration1. To give true notice of the real status of real property and real rights thereto2. To prejudice third persons (unless they have actual knowledge of the transaction concerned) [709]3. To record acts or contracts (transmissions and modifications of ownership and other eal rights over real properties) Note: Registration does not validate or cure a defective instrument like a forged deed.4. To prevent the commission of frauds, thus insuring the effectivity of real rights over real property.

*Registration cannot bind property where it is legally ineffective i.e. registration under wrong system.

*Registration does not vest title, it is not a mode of acquiring ownership

*The books in the Registry of Property shall be public for those who have known interest in ascertaining the status of the immovable or real rights annotated or inscribed therein [710]*Reference to special laws must be made to determine what titles are subject to registration, as wel as the form, effects and cancellation of registration, and the manner of keeping the books and the value of the entries contained in said books [711]

MODES OF ACQUIRING OWNERSHIP [712] (OLDTIPS)1. Occupation2. Law3. Donation4. Tradition4. Intellectual Creation6. Prescription

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7. Succession

A. Original Modes—independent of any pre-existing or preceding title or right of another1. Occupation2. Intellectual Creation or work

B. Derivative Modes—somebody else was the owner before1. Succession2. Donation3. Prescription4. Law (Alluvium, accession, abandonment of river beds, adjunction, fruits falling on

another’s land5. Tradition, as a consequence of certain contracts (like sale, barter, assignment, simple loan

or mutuum)

MODE vs. TITLEMode Title

Directly produces real right Serves merely to give occasion for its acquisition or existence

Proximate cause Remote causeThe true cause (or process) The justification for the processEssence of right w/c is to be created or transmitted

Means whereby essence is transmitted

Creates a real right Creates a personal right

OCCUPATION--The acquisition of ownership by seizing corporeal things that have no owner, made with the intention of acquiring them, and accomplished according to legal rules.

Requisites: (SCA-IC)1. There must be seizure or apprehension (the material holding is not required as long as

there is right of disposition)2. The property seized must be corporeal personal property3. The property seized must be susceptible of appropriation (either abandoned property or

unowned property)4. There must be intent to appropriate5. The requisites or conditions of the law complied with

Things susceptible to Occupation [713]1. Things w/o owner2. animals that are object of hunting and fishing3. Abandoned movables4. Hidden treasure

* Ownership of a piece of land cannot be acquired by occupation [714]*Right to hunt and fish regulated by special laws [715] (such as Fisheries Act; Act 1499 prohibition on use of explosives and poisons for fishing, Hunting Law, declaring close and open season)

ANIMALS [716/717]1. Swarm of bees

-owner shall have a right to pursue them to another’s land, paying damages to the owner of the latter’s land.

-land owner shall occupy/retain bees if after 2 days, owner did not pursue the bees2. Domesticated Animals

-may be redeemed w/in 20 days from occupation of another person; shall pertain to one who caught them if no redemption made w/in the period

3. Pigeons and fish-when they go to another breeding place, they shall be owned by the owner thereof

provided they are not enticed.

MOVABLES1. Hidden Treasure found on another’s property, rights under 438 acquired [718]

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2. Movable found w/c is not treasure [719/720]a. must be returned to ownerb. if finder retains, he may be charged with theftc. if owner is unknown, give to mayor; mayor shall announce the finding of the movable for two consecutive weeksd. if owner does not appear 6 months after publication, thing is awarded to findere. if owner appears, he is obliged to pay 1/10 of value of property to finder as reward [720]f. if movable is perishable or cannot be kept w/o deterioration or w/o expenses it shall be sold at public auction 8 days after publication

OCCUPATION vs. POSSESSIONOccupation Possession

Mode of acquiring ownership Raises presumption of ownership (concept of an owner)

Applies only corporeal personal property Applies to both corporeal and incorporealThe thing is w/o owner Thing is w/ ownerThere is intent to acquire ownership Possession may be had in the concept of

mere holderTakes place w/ some form of possession Takes place w/o occupationGenerally with short duration Usually takes place with longer durationCannot lead to another mode of acquisition Can lead to acquisition through prescription

OCCUPATION vs. PRESCRIPTIONOCCUPATION PRESCRIPTION

Original Mode Derivative ModeShorter period of possession Generally longer period of possession

INTELLECTUAL CREATION

Persons who may acquire ownership through intellectual creation [721]1. The author with regard to his literary, dramatic, historical, legal, philosophical, scientific or

other work; 2. The composer as to his musical composition; 3. The painter, sculptor, or other artist, with respect to the product of his art; 4. The scientist or technologist or any other person with regard to his discovery or invention.

When ownership takes place? [722] Author & Composer—Before publication (Copyright Laws govern after publication) Painter/Sculptor—before copyrighted Scientist/technologist—before patented

*Ownership of letters and private communications belong to the person to whom they are addressed and delivered. Publication of such requires consent of writer or heirs except for reasons of public good of interest of justice. [723] (Letter here means paper with words, because the ideas or thoughts really belongs to the sender)

Some Terms:Copyright—an intangible, incorporeal right granted by statute to the author or originator of

certain (literary or artistic productions whereby he is invested, for a specified period, with the sole & exclusive privilege of multiplying copies of the same & publishing and selling them.

*Works of Government are exempted from copyrights.

Patent—an exclusive right to an invention granted to the patentee, his heirs or assigns for the term thereof (20 years under Intellectual Property Code)

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Patent Infringement—act of using or selling any patented invention w/o authority during the term of the patent and this includes one who induces the infringement.

Patentable—refers to something suitable to be patented. To be patentable, a device, process or improvement must embody a new idea or principle not before known and it must be a discovery as distinguished from mere mechanical skill or knowledge.

Not Patentable:a. Discoveries, scientific theories, mathematical methodsb. Computer Programsc. Methods for treatment of human or animal bodyd. Plant varieties or animal breedse. Aesthetic creationsf. Contrary to public order or morality

DONATION--An act of liberality whereby a person disposes gratuitously of a thing or right in favor of another who accepts it. [725]

Characteristics:a. Unilateral—obligation imposed on the donorb. Consensual—perfected at the time donor knows of the acceptance [734]

Requisites: (CIDA)1. The donor must have capacity to make the donation of a thing or right2. He must have the donative intent (animus donandi) or intent to make the donation out of

liberality to benefit the donee.3. Delivery, whether actual or constructive of the thing or right donated4. Donee must accept or consent to donation

Requirements of a Donation1. Subject Matter—anything of value; present property & not future, must not impair legitime2. Causa—anything to support a consideration; generosity, charity, goodwill, past service, debt3. Capacity to donate and dispose and accept donation4. Form—depends on value of donation

Essential Elements/features of a true donationa. Alienation of property by the donor during his lifetime, which is acceptedb. Irrevocability by the donorc. Animus Donandid. Consequent impoverishment of the donor (diminution of his assets)

Kinds of Donation

A. As to consideration1. Simple—the cause is pure liberality (no strings attached)2. Remuneratory—purpose: to reward past services, with no strings attached. (The services

here do not constitute recoverable debts.) Ex. A donates a parcel of land to B who had previously helped him review the bar exams.

3. MODAL—purpose: to reward future services or because of certain future changes or burdens or charges is less than the value of donation. Ex. A donates to B a parcel of land worth P700K but B should give A a ring worth P150K or teach him certain things, the value of instruction being P90K

4. Onerous—here there are burdens, charges or future service equal in value to that of the thing donated. Ex. A donated land worth P2M to B but B has to give A a Ford Expedition worth also P2M. (Case law provides that this is not really a donation)

B. As to effectivity1. inter vivos—takes effect during the lifetime of the donor2. mortis causa—takes effect upon the death of the donor3. in praesenti—to be delivered in future (also considered inter vivos)4. propter nuptias—on the occasion of marriage

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C. From the viewpoint of object donated1. Corporeal

a. Donations of real propertyb. Donations of personal property

2. Incorporeal—donations of alienable rights

INTER VIVOS MORTIS CAUSATakes effect independently of the donor’s death

Takes effect upon the death of the donor

Made out of donor’s pure generosity Made in contemplation of his death without the intention to lose the thing or its free disposal in case of survival

Title conveyed to the donee before the donor’s death

Title conveyed upon donor’s death

Valid if donor survives donee Void if donor survives doneeGenerally irrevocable during donor’s lifetime except for grounds provided by law

Always revocable at anytime and for any reason before the donor’s death

Must comply with the formalities required by Law on donations

Must comply with formalities required by Law on Succession

Must be accepted by the donee during his lifetime

Can only be accepted after the donor’s death

Subject to donor’s tax Subject to estate tax

Instances of Donation Inter Vivos1. Donor warrants title to property over which she reserved life time usufruct2. Donation was accepted by donees who were given limited right of disposition, with donor reserving beneficial ownership3. Donation was executed out of love and affection as well as a recognition of the personal services tendered by the donee4. Ownership and possession of property immediately transferred to donee but his right to fruits begin only after donor’s death5. Causes of revocation specified6. Donor states that he makes a perfect, irrevocable and consummated donation7. Donor and donee prohibited from alienating and encumbering the property8. Usufruct reserved by the donor

Instances of Donation Mortis Causa1. Registration of deed of donation prohibited2. Donation to take effect and pass title only by and because of death3. Right to dispose and enjoy reserved by donor

* In case of doubt the conveyance should be deemed Mortis Causa in order to avoid uncertainty as to the ownership of the property. The legal principle enunciated in Art. 1378 applies, where in case of gratuitous contracts the least transmission of rights and interests must prevail.

* Fixing of an event or imposition of a suspensive condition, w/c may take place beyond the natural expectation of life of the donor does not affect the nature of a donation inter vivos unless a contrary intention appears [730]* Donation subject to the resolutory condition of the donor’s survival is a donation inter vivos [731]*Donations w/ an onerous cause governed by rules on contracts, in case of remuneratory donations where the portion exceeds the value of burden, excess is governed by contracts and the remaining, rules on donations [733]

Who May Give Donations? All persons who may contract and dispose of their property [735]

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Therefore: Guardians and trustees cannot donate property entrusted to them [736]* Donor’s capacity determined as of the time of making the donation [737]

Who may accept donations?1. Natural and juridical persons w/c are not specially disqualified by law. [738]2. Minors & other incapacitated

a. by themselves i. if pure and simple donationii. if it does not require written acceptance

b. by guardian, legal representatives if needs written acceptancei. natural guardian—not more than 50Kii. court appointed—more than 50K

3. Conceived and unborn child represented by person who would have been guardian if already born. [742]

PROHIBITED DONATIONS1. Made between persons who are guilty of adultery and concubinage at the time of donation2. Made b/w persons found guilty of the same criminal offense in consideration thereof3. Made to public officers or his/her spouse, descendants and ascendants by reason of his office4. Made to the Priest who heard confession of donor during his last illness or the minister of the gospel who extended spiritual aid to him during the same period5. Made to Relatives of priest w/in the 4th civil degree, church, order of community where the priest belongs6. Made to a Physician, nurse etc. who took care of the donor during his last illness7. Made by a ward to the guardian before the approval of accounts8. Made to an attesting witness to the execution of donation, if there is any, or to the spouse, parents, or children or anyone claiming under them9. Made by individuals, associations or corporations not permitted by law to make donations10. Made by spouses to each other during the marriage or to persons of whom the other spouse is a presumptive heir.

* Donations of the same thing to two or more different donees governed by the provisions on Double Sale [744]* Donee must accept donation personally or through an authorized person with special power of attorney or one with a general and sufficient power [745]* Acceptance s/d be made during lifetime of both donee and donor [746]

Donation of Movables [748]Orally or in writing If oral—simultaneous delivery of thing or document representing right required If value of personal property exceeds P5,000 donation and acceptance must be in writingNon-compliance w/ foregoing renders donation void.

Donation of Immovables [749]Must be in a public document, specifying the property donated and the value of charges the donee should satisfy

Acceptance may be made in the same deed or separately, but must be made during the lifetime of donor

Acceptance in a separate document requires notification to donor in an authentic form

What may be given? LIMITATIONS ON DONATION OF PROPERTY [750] All or part donor’s present property provided he reserves sufficient means for the support of

the following:a. himselfb. relatives who by law are entitled to his supportc. legitimes shall not be impaired if he has forced heirs

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When there is no reservation of the abovementioned or if donation is inofficious, may be reduced on petition of persons affected. Donations should not prejudice 3rd persons Future property cannot be donated [751]

Note: Art. 750 does not apply to onerous donation, mortis causa and propter nuptias(which cannot be reduced, as they are only revocable on grounds expressly provided by law)

*When donation is made to several persons jointly, it is understood to be in equal shares and there is no right of accretion among them unless the donor otherwise provides. This rule is not applicable to donations made to husband and wife jointly. [753]*Donee is subrogated to all rights of donor in case of eviction. Donor however is not obliged to warrant the thing donated except when donation is onerous. Donor is liable for hidden defects in case there is bad faith. [754]*Donor may make reservations to dispose part of the object donated, but if he dies it pertains to the donee. [755]*The donation of naked ownership and usufruct may be made to different persons provided all the donees are living the time of donation [756]* Reversion may be established in favor of the donor and to other persons(who are living at the time of donation). Stipulations by the donor in favor of 3rd persons who are not living at the time of donation is void but shall not nullify the donation [757]* Stipulation that donee should pay debts of the donor applicable only to debts contracted previous to the donation, unless there is an agreement to the contrary. The donee shall not be responsible to debts exceeding the value of property donated, unless a contrary intention appears. [758]* Donee is responsible to pay debts even if there is no stipulation if the donation was made in fraud of creditors. It is considered in fraud of creditors when the donor did not reserve sufficient property to pay debts prior to donation [759]

EFFECTS OF DONATION1. Donee may demand the delivery of the thing donated2. Donee is subrogated to the rights of the donor in the property3. In donations propter nuptias, the donor must release the property from encumbrances, except servitudes4. Donor’s warranty exists if: (a) expressed (b) donation is propter nuptias (c) donation is onerous (d) donor is in bad faith5. When the donation is made to several donees jointly they are entitled to equal portions, w/o accretion, unless the contrary is stipulated

REVOCATION OR REDUCTION OF DONATIONS

REVOCATION WHEN DONOR DOES NOT HAVE CHILDREN DURING DONATION, CONDITIONS TO TAKE EFFECT [760]

a. if the donor after the donation should have legitimate or legitimated or illegitimate children, even though they be dead

b. if the child of the donor, whom he believed to be dead should turn out to be alivec. if the donor should adopt a minor.

--The reduction or revocation is only insofar as it exceeds the portion that may be freely disposed of by will after taking account the whole estate of the donor at the time of existence of the abovementioned events. [761]

What the donee must do after reduction or revocation? [762]1. Return the property.2. Give the value (usually price of the sale) if it was sold. If it was mortgaged donor may pay the debt subject to reimbursement from the donee.

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3. Return the value at the time of perfection of donation if property lost or totally destroyed.

Prescription of action for revocation or reduction: after 4 years from the birth of the first child or from his legitimation, recognition or adoption or from judicial declaration of filiation or from the time information was received of child’s existence. Action is not renounces and transmitted upon donor’s death to legitimate and illegitimate children and descendants. [763]

*Donation is revoked upon failure of the donee to comply with conditions. Action for revocation prescribes in four years and also transmissible to heirs and may be exercised against donee’s heirs. Alienations or mortgages made by donee void. [764]

REVOCATION BY REASON OF INGRATITUDE [765] [CIR](1) If the donee should commit some offense against the person, the honor or the property of the donor, or of his wife or children under his parental authority(2) If the donee imputes to the donor any criminal offense, or any act involving moral turpitude, even though he should prove it, unless the crime or the act has been committed against the donee himself, his wife or children under his authority(3) If he unduly refuses support to donor when the donee is legally or morally bound to give support to the donor.-- Alienations and mortgages effected before the notation of the complaint for revocation in the Registry of Property shall subsist. [766]-- If donor cannot recover property to 3rd persons, he may recover the value of property(at the time of donation) to the donee [767]-- Action cannot be renounced in advance. Action prescribes w/in 1 year from the time donor had knowledge of the fact that it was possible for him to bring the action[769]

*What fruits must be returned when donation is revoked [768]a. Fruits accruing from the time action is filed must be returned if the ground is

1. Article 760 (revocation by donor having no children)2. Inofficiousness of the donation because the legitime is impaired [771]3. Ingratitude [765]

b. Fruits received after failure to fulfill the condition/s must be returned if the ground is Non-Compliance with any of the conditions imposed. [764]

*Actions are not transmissible to the heirs if the donor did not institute the same.(Even if donor died before the 1 year expiration period).. And also actions cannot be brought against the donee’s heirs unless the complaint was filed upon his(donee’s) death. [770]

--Exceptions: 1. Donee killed the donor (donor never had the chance to revoke)2. When donor died w/o knowing act of ingratitude

PERSONS WHO CAN ASK FOR THE REDUCTION OF INOFFICIOUS DONATION upon donor’s death [772]1. The compulsory heirs of the donor (whether children, other descendants, ascendants or surviving spouse)2. The heirs and successors-in-interest of the compulsory heirs

PERSONS WHO CANNOT ASK FOR REDUCTION OF INOFFICOUS DONATION upon donor’s death [772] [VDLC]1. voluntary heirs of the donor (friends, brothers etc.)2. devisees (recipients of gifts of real property in a will)3. legatees (recipients of gifts of personal property in a will)4. creditors of the deceased

Prescriptive Period to reduce or revoke: 5 Years from the time of donor’s death

* Preference on reduction is given to earlier donations, therefore the subsequent donations must first be reduced [773]

Revocation vs. ReductionRevocation Reduction

Affects the whole property regardless of whether the legitime has been impaired or not

As a rule only part of the property is affected, and applies only when legitime is impaired

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As a rule, for the benefit of the donor As a rule for the benefit of the heirs of the donors (because of their legitimes)

Applicable to cases of supervening birth; non fulfilment of conditions/charges; acts of ingratitude and inofficious donations

Applicable to cases of supervening birth and inofficious donations and when legitimes are impaired or donor did not reserved for support of himself and relatives

PRESCRIPTION- a mode by which one acquires ownership and other real rights thru lapse of time; also a means by which one loses ownership, rights and actions.

Kinds:1. Acquisitive Prescription—one acquires ownership and other real rights through the lapse of time in the manner and under the conditions laid down by law.Requisites: (CTPL)

a. capacity to acquire by prescriptionb. a thing capable of acquisition by prescriptionc. possession of the thing under certain conditionsd. lapse of time provided by law

a. Ordinary—requires possession of things in good faith and with just title for the time fixed by law. Requisites (1117-1120):

Possession in Good Faith (Reasonable belief that the person who transferred the thing is the owner & could validly transmit ownership. This must exist throughout the entire period required for prescription) Just title (through any of the modes recognized by law; must be true and valid; must be proved) Within the time fixed by law: MOVABLES: a) in GF-4 years; b) w/o conditions-8 years IMMOVABLES: a) 10 years In concept of an owner Public, peaceful and uninterrupted possession (Must be known to the owner of the thing; acquired and maintained w/o violence; no act of deprivation by others)

Possession is naturally interrupted when through any cause it should cease for more than one year. The old possession is not revived if a new possession should be exercised by the same adverse claimant. (1122) Civil interruption is produced by judicial summons to the possessor (1123) When Judicial Summons shall be deemed not issued: (1124)

a. If it should be void for lack of legal solemnitiesb. If the plaintiff should desist from the complaint or should allow the

proceedings to lapsec. If the possessor should be absolved from the complaint

Any express or tacit recognition by the possessor of the owner’s right also interrupts possession.(1125) Area possessed prevails over the area in the title (1135)

b. Extra-ordinary—acquisition of ownership and other real rights without need of title or of good faith or any other condition

Requisites:1. Just title is proved2. Within the time fixed by law

a. 8 years for movablesb. 30 years for immovables

3. in concept of an owner4. public, peaceful and uninterrupted

2. Extinctive Prescription—rights and actions are lost through the lapse of time in the manner and under the conditions laid down by law.

DISTINCTION BETWEEN ACQUISITIVE AND EXTINCTIVE PRESCRIPTIONACQUISITIVE EXTINCTIVE

Relationship between the occupant and the land in One does not look to the act of the possessor but

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terms of possession is capable of producing legal consequences; it is the possessor who is the actor

to the neglect of the owner

Requires possession by a claimant who is not the owner

Requires inaction of the owner or neglect of one with a right to bring his action

Applicable to ownership and other real rights in the occupant

Applies to all kinds of rights, whether real or personal

Results in the acquisition of ownership or other real rights in a person as well as the loss of said ownership or real rights in another

Results in the loss of a real or personal right or bars the cause of action to enforce the said right

Can be proven under the general issue w/o its being affirmatively pleaded

Should be affirmatively pleaded and proved to bar the action or claim of the adverse party

Vests ownership or other real rights in the occupant Produces the extinction of rights or bars a right of action

Laches—failure or neglect for an unreasonable and unexplained length of time, to do that which, by exercising due diligence, one could or should have done earlier. It is negligence or omission to assert a right within a reasonable time, warranting a presumption that the party entitled to assert it either has abandoned it or declined to assert it.

PRESCRIPTION vs. LACHESPRESCRIPTION LACHES

Concerned with the fact of delay Concerned with the effect of delayA question or matter of time Principally a question of inequity of permitting

a claim to be enforced, this inequity being founded on some subsequent change in the condition or the relation of the parties

Statutory Not statutoryApplies at law Applies in equityCannot be availed of unless it is especially pleaded as an affirmative allegation

Being a defense in equity, it need not be specifically pleaded

Based on a fixed time Not based on a fixed time

Who may acquire by prescription (1107)1. Persons who are capable of acquiring property by other legal modes2. Minors and other incapacitated personally or through their parents, guardians or legal representatives

Against whom Prescription runs (1108) (MAP-JC)1. Minors and other incapacitated persons who have parents, guardians or other legal representatives2. Absentees who have administrators, either appointed by them before their disappearance or by the courts3. Persons living abroad who have managers or administrators4. Juridical persons except the State and its subdivisions5. Between co-heir or co-owner—Prescription obtained by one co-heir/co-owner benefits others(1111)

Against whom Prescription does not run (1109)1. Between husband and wife eventhough there be a separation of property agreed upon in the marriage settlements or by judicial decree.2. Between parents and children during the minority or insanity of the latter3. Between guardian and ward during the continuance of the guardianship

Renunciation of Prescription Already Obtained. Requisites (1112)1. The person renouncing must have capacity to alienate property.2. The renunciation must refer to prescription already obtained3. It must be made by the owner of the right, unless an administrator, executor or other legal representative has been given a special power of attorney4. It must not prejudice the rights of creditors

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The right to acquire by prescription in the future cannot be renounced (1112) There is tacit renunciation when the renunciation results from acts which imply

abandonment of the right acquired (1112) Notwithstanding the express or tacit renunciation by a person of a prescription already

obtained, his creditors and all persons interested in making prescription effective may still plead prescription for themselves to the extent of their credit (1114)

Things subject to Prescription (1113): All things w/in the commerce of men, private property & patrimonial property of the state

Things not subject to Prescription:1. Of Public domain2. intransmissible rights3. movables possessed through a crime (1133)4. registered land under PD 1529

RULES IN COMPUTATION OF PERIOD (1138)1. Present possessor may tack his possession to that of his grantor or predecessor in interest2. Present possessor presumed to be in continuous possession even with intervening time unless contrary is proved3. First day excluded, last day included

PRESCRIPTIVE PERIOD OF ACTIONSPrescriptive Period Actions

Imprescriptible To declare an inexistent or void contract To quiet title To demand a right of way To bring an action for abatement of public

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nuisance To demand partition in co-ownership To enforce a trust Probate of a will To recover possession of a registered land under PD 1529 by the registered owner

30 Years real actions over immovables (but not foreclosure) w/o prejudice to the acquisition of ownership or real rights by acquisitive prescription

10 Years Actions upon a written contract Actions upon an obligation created by law Actions upon a judgment from the time judgment becomes final Actions among co-heirs to enforce warranty against eviction in partition Mortgage action

8 Years Action to recover movables w/o prejudice to acquisition of title for a shorter period or to the possessors title under Arts. 559, 1505, 1133

6 Years Actions upon an oral contract Actions upon a quasi-contract

5 Years Action for annulment of marriages (except on the ground of insanity) and for legal separation counted from the occurrence of the cause Actions against the co-heirs for warranty of solvency of the debtor in credits assigned in partition Action for declaration of the incapacity of an heir (devisee or legatee) to succeed All other actions whose periods are not fixed by law, counted from the time action accrues

4 Years Action to revoke donations due to non-compliance of conditions Action to rescind partition of deceased’s estate on account of lesion Action to claim rescission of contracts Annulment of contracts for vice of consent Actions upon a quasi-delict Action to revoke or reduce donations based on birth, appearance or adoption of a child Actions upon an injury to the rights of the plaintiff (not arising from contract)

3 Years Actions under the eight hour labor law Actions to recover losses in gambling Money claims as a consequence of employer-employee relationship Action to impugn legitimacy of a child if the husband or his heirs reside abroad

2 Years Action to impugn legitimacy of a child if the husband or his heirs are not residing in the city or municipality of birth

1 Year Action to impugn legitimacy of a child if the husband or his heirs are residing in the city of municipality of birth Forcible entry and unlawful detainer Defamation Revocation of donation on the ground of ingratitude Rescission or for damages if immovable is sold with an apparent burden or servitude Action for warranty of solvency in assignment of credits

6 Months Actions for warranty against hidden defects or encumbrances over the thing sold

40 Days Redhibitory action based on faults or defects of animals

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